Fiverr Cuts 30% Workforce in AI Transition

Fiverr, the well-known online marketplace for freelancers, is taking a significant step by laying off 30% of its workforce. This move will impact around 250 employees and is part of a broader restructuring plan aimed at embracing artificial intelligence (AI). CEO Micha Kaufman is spearheading this transformation, seeking to make Fiverr an AI-first company that operates with greater efficiency.

The decision to cut jobs comes in the wake of a growing trend among tech companies to automate operations through AI. Larger firms, like Salesforce, have made similar moves, investing heavily in AI technologies to streamline customer care and logistical tasks. Fiverr aims to follow suit by minimizing management layers and fostering a leaner workforce with enhanced productivity.

Fiverr's platform primarily connects freelancers with clients looking for digital services, such as graphic design and programming. The marketplace is designed to function with minimal human intervention, automating processes from ordering to payment. This shift towards automation is expected to allow the company to operate with a smaller team while still maintaining service levels.

While it is unclear which specific roles will be affected by the layoffs, Fiverr maintains that the overall business activities will not be materially impacted in the near term. The company’s strategy involves reinvesting some of the savings from the layoffs back into the business, focusing on building a modern, AI-driven infrastructure.

As Fiverr transitions into this new phase, the implications for freelancers and the digital marketplace remain to be seen. Freelancers may find new opportunities and challenges as the platform evolves to integrate AI into its core operations. The future of work on Fiverr could change dramatically, shaping how freelancers and clients interact in an increasingly automated world.