Fiverr Cuts 250 Jobs as It Shifts to AI-First Model
Key Points
- Fiverr will lay off 250 employees, about 30% of its workforce.
- CEO Micha Kaufman frames the cuts as part of an "AI‑first" transformation.
- The company has already integrated AI into customer support and fraud detection.
- Kaufman previously urged staff to automate 100% of their work using AI.
- Similar AI‑focused restructurings have been announced by Duolingo.
- Workday’s recent elimination of 1,750 roles reflects a broader industry trend.
- The layoffs aim to create a leaner, faster operation with higher productivity.
- Remaining staff will rely more heavily on AI tools for daily tasks.
Fiverr announced a reduction of 250 positions, roughly 30 percent of its workforce, as part of a strategic pivot to become an "AI-first" company. CEO Micha Kaufman said the move will streamline operations, boost productivity and rely on AI-driven tools already deployed in customer support and fraud detection. The layoffs follow similar AI-focused restructuring at other tech firms, including Duolingo, and come amid broader industry cuts such as Workday’s elimination of 1,750 roles.
Fiverr Announces Workforce Reduction
Fiverr, the online gig‑economy platform, disclosed that it will lay off 250 employees, representing about 30 percent of its staff. The decision was communicated by CEO Micha Kaufman in an essay posted on X, where he framed the cuts as a necessary step toward reshaping the company into an "AI-first" organization.
Rationale Behind the AI‑First Pivot
Kaufman described the transition as a return to "startup mode" and emphasized a vision of a leaner, faster operation built on a modern AI‑focused technology infrastructure. He argued that the company’s existing AI tools—particularly those used in customer support and fraud detection—have reduced the need for a larger workforce. The goal, according to Kaufman, is to create a smaller team with substantially greater productivity and fewer management layers.
CEO’s Past Remarks on Automation
Earlier in the year, Kaufman discussed the impact of artificial intelligence on employment during a CBS News interview. He encouraged employees to "automate 100 percent" of their tasks using AI, while asserting that human workers would remain indispensable for "non‑linear thinking" and "judgement calls." The recent layoffs suggest that the balance between automation and human labor is shifting more dramatically than previously anticipated.
Industry Context and Comparisons
Fiverr’s restructuring mirrors moves by other tech companies seeking to embed AI more deeply into their operations. Duolingo, for example, announced a similar plan to become "AI‑first" earlier in the year. Larger firms are also trimming staff; Workday disclosed a reduction of 1,750 roles, illustrating a broader trend of workforce cuts linked to AI adoption across the sector.
Implications for Employees and the Market
The layoffs affect fewer individuals than the larger cuts announced by companies like Workday, but they still represent a significant contraction for Fiverr. Remaining employees are expected to operate with heightened efficiency, leveraging AI tools to handle tasks that previously required larger teams. The shift underscores the growing pressure on tech firms to balance innovation with cost management, and it highlights the evolving role of AI in shaping employment patterns within the gig‑economy space.