Fiverr Cuts 30% of Staff to Become “AI-First” Platform

Online freelance marketplace Fiverr International Ltd. is cutting approximately 250 jobs—roughly 30% of its workforce—in a move CEO Micha Kaufman calls a shift to an “AI-first” strategy. The cuts, announced Monday, explicitly link the reduction in headcount to productivity gains from artificial intelligence, marking one of the clearest examples yet of AI directly displacing tech workers.

Key Facts

• The Cut: ~250 employees (30% of total staff).
• The Reason: “AI-first” pivot; CEO says fewer humans needed for existing business.
• The Warning: Kaufman previously told staff to “automate 100%” of their work.
• Source: Reuters, The Register

The “AI-First” Pivot

In a letter to employees, CEO Micha Kaufman described the layoffs as a “painful reset” necessary to make the company leaner and faster. He stated that the company had spent the last year using AI to fix customer support and engineering workflows. “As we evaluate what has been done and what can be done, we believe we don’t need as many people to operate the existing business,” Kaufman wrote.

This follows a blunt warning Kaufman issued to staff in May, where he reportedly told employees to “automate 100% of what they do” or face obsolescence. The company now plans to rebuild its infrastructure around AI agents rather than human managers, aiming for a “smaller and flatter organization.”

Impact and Severance

The reduction affects departments globally, bringing the company’s headcount down significantly from its previous level of around 760 employees. Departing staff will receive severance packages, extended healthcare, and career transition assistance. Kaufman insisted the cuts would not hurt the freelance marketplace itself, claiming the platform will run more efficiently with fewer humans involved.