Fiverr to lay off 30% of its staff in AI-driven overhaul

Fiverr is undergoing a significant transformation, marked by a reduction of 30% of its workforce, impacting 250 employees, as reported by Reuters on 15 September, 2025. 

The move is part of a restructuring plan outlined by CEO Micha Kaufman, driven by Fiverr’s strategy to expand its use of AI to automate systems and streamline operations across the platform.

The company, which had 762 employees as of December 2024, is following a trend set by larger tech firms like Salesforce, which have also invested heavily in AI agents and machine learning to automate customer care and logistics.

Restructuring Around Artificial Intelligence

CEO Micha Kaufman has articulated a clear vision to transform Fiverr into an “AI-first company”. 

This future state is envisioned as being “leaner, faster, with a modern AI-focused tech infrastructure,” featuring a smaller team that achieves “substantially greater productivity” and operates with “far fewer management layers”. 

While the exact kinds of jobs that will be impacted by the layoffs have not been specified, Fiverr already operates as a self-service digital marketplace. 

On this platform, freelancers connect with businesses or individuals requiring digital services such as graphic design, editing, or programming. Many of the existing processes, including ordering, delivery, and payments, are already automated and require minimal employee intervention.

Operational Impact and Company Roots

Despite the substantial workforce reduction, Fiverr anticipates that the job cuts will not materially impact business activities across its marketplace in the near term. 

The company also plans to reinvest a portion of the savings generated from these layoffs back into the business.

Historically, the company’s name, Fiverr, originated from the fact that most gigs initially started at $5. 

Over time, as the business expanded, the firm evolved its offerings, introducing subscription services and subsequently raising the bar for service prices.

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