Fiverr International, an Israel-based online marketplace for freelance services, announced a significant restructuring, laying off 30% of its workforce—approximately 250 employees—as part of its transformation into an “AI-first” company. This move, detailed in a letter from CEO Micha Kaufman to employees, aims to create a leaner, faster organization with a modern AI-focused infrastructure, as reported by Reuters and other sources. The layoffs, affecting various departments, reflect a broader trend in the tech industry toward AI-driven efficiency.
Fiverr, which had 762 employees as of December 2024, is doubling down on artificial intelligence to automate systems and streamline operations. Kaufman described the workforce reduction as a “painful reset” necessary to return to a “startup mode” with fewer management layers and enhanced productivity. The company has already integrated AI tools like Neo, an AI-powered project matching system, Fiverr Go for project scoping, and Dynamic Matching for marketplace efficiency. These tools leverage natural language processing and machine learning to reduce human intervention in routine tasks, such as customer support and fraud detection, which now rely on algorithms to handle inquiries and analyze transaction patterns.
The restructuring aligns Fiverr with other tech giants like Salesforce, which recently cut 4,000 jobs to prioritize AI agents. Kaufman emphasized that AI requires a different skill set and mindset, necessitating a simplified infrastructure built from the ground up. Despite the layoffs, Fiverr maintains its 2025 financial guidance, expecting to achieve profit targets a year earlier than planned by reinvesting savings into AI development. The company assures that marketplace operations will remain unaffected in the near term, with plans to upskill existing staff and recruit AI-native talent.
This pivot comes amid a surge in demand for AI expertise on Fiverr’s platform, with a reported 18,347% increase in searches for AI specialists over the past six months, as noted in a May 2025 Nasdaq report. Freelancers are increasingly sought for complex tasks like multi-agent system development, reflecting a shift from basic chatbots to advanced automation. However, the rise of generative AI tools like ChatGPT has raised concerns among freelancers, with a 21% drop in automation-prone job postings, particularly in writing and graphic design, according to a WINSS study.
Fiverr’s stock fell over 4% following the announcement, signaling investor caution about short-term disruptions, as reported by Finimize. Yet, Kaufman remains optimistic, framing the transformation as a chance to reimagine work, much like Fiverr did 16 years ago. By fostering smaller, AI-enhanced teams, Fiverr aims to boost productivity tenfold and compete in a rapidly evolving digital economy. As the company navigates this AI-driven shift, it sets a precedent for balancing innovation with operational efficiency, though challenges like workforce morale and market perception persist.
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