Fiverr to Cut 30% of workforce, Citing AI-Driven Restructuring
NEW YORK – Fiverr International Ltd. (11V.F) announced Monday it will reduce its workforce by 30%, impacting approximately 250 employees, as the online services marketplace accelerates its investment in artificial intelligence and automation. The move mirrors similar restructuring efforts across the tech industry as companies prioritize AI integration to streamline operations.
The layoffs are part of a broader conversion plan unveiled by Fiverr CEO Micha Kaufman, aiming to build “a company focused on AI, lighter, faster, with a modern technological infrastructure focused on AI, a smaller team, whose productivity is much higher, and a significantly lower number of management levels,” according to a letter to employees. As of december 2023, Fiverr employed 762 people.
Fiverr operates a digital marketplace connecting freelancers with clients seeking services like graphic design, writing, and programming.The company noted that its platform already features a high degree of automation for order processing, delivery, and payments, minimizing the need for employee intervention.
The restructuring comes as Fiverr evolves from its origins-where most services, or “gigs,” began at $5-to include subscription services and higher-priced offerings.Despite the important workforce reduction,Fiverr stated it does not anticipate a material impact on short-term market activity and intends to reinvest the resulting savings back into the company.
The company’s decision aligns with a broader trend within the technology sector, exemplified by companies like Salesforce (CRM.N), which are allocating substantial resources to AI and machine learning to automate tasks in areas such as customer service and logistics.
