By asahifile 
Fiverr Is Laying Off 250 Employees to Become an ‘AI-First Company’
In a recent announcement, Fiverr, the popular gig economy platform, is laying off 250 employees, which represents about 30% of its staff, as it transitions to an “AI-first” business model. CEO Micha Kaufman detailed this shift in a post on X (formerly Twitter), indicating the company’s move aligns with broader trends across the tech industry. Companies like Duolingo have also embraced this model, planning to replace some contract workers with AI-driven processes.
Kaufman describes this change as a return to a “startup mode,” aiming to create an organization that is “leaner, faster” with a modern, AI-focused tech infrastructure. This shift will enable Fiverr to streamline operations and improve productivity with a smaller, more efficient team, thus requiring fewer management layers. He pointed out that the integration of AI tools in customer support and fraud detection has allowed the company to operate with fewer employees.
This move towards automation is not entirely unexpected. Earlier this year, Kaufman urged employees in an interview to “automate 100 percent” of their tasks with AI, emphasizing that this wouldn’t make them replaceable due to their unique value in creative and decision-making processes. However, the recent layoffs indicate a different reality for many of the platform’s workers.
Despite Fiverr’s smaller cuts compared to other tech firms—such as Workday, which announced 1,750 layoffs in February—these changes echo a common theme: with advances in AI, companies can accomplish more with fewer people.
Key Takeaways
- Job Cuts: Fiverr eliminates 250 jobs, affecting about 30% of its workforce.
- Transition to AI-First: The company aims to modernize and increase productivity through AI integration.
- Industry Trends: This move reflects wider trends in tech where firms seek cost efficiency through automation.
- Automation Advice: The CEO previously encouraged employees to automate their tasks, raising questions about job security.
By embracing an AI-first mindset, Fiverr is positioning itself for future growth, but at a significant cost to its current workforce. As this trend continues, it will be crucial for both companies and employees to navigate the evolving landscape of work and AI technology.