The Israel-based online services marketplace Fiverr International is cutting 30% of its workforce, approximately 250 jobs. This decision comes as the company seeks to invest more heavily in artificial intelligence (AI) to automate systems and streamline operations.
The cuts are part of a restructuring plan announced by Fiverr CEO Micha Kaufman, focusing on integrating AI into the platform.
“Today, we are launching such a transformation for Fiverr, turning it into an AI-first company that’s leaner, faster, with a modern AI-focused tech infrastructure, a smaller team, each with substantially greater productivity, and far fewer management layers,” Micha Kaufman said in a September 15 letter to employees.
“This transformation requires a painful reset, and as we make it, we will part ways with approximately 250 team members across various departments, resulting in a smaller and flatter organisation. This is possibly one of the toughest decisions I have had to make, especially as Fiverr is such a magical place with a strong sense of belonging and a mission-driven culture,” the CEO’s letter continued.
The layoffs mirror similar actions taken by other large tech companies, such as Salesforce, which has invested heavily in AI agents and machine learning to automate customer care and logistical work.
While it is not yet known which jobs will be affected, Fiverr, which launched in 2010, runs a digital self-serve platform that connects freelancers to businesses or individuals needing digital services like graphic design, editing, or programming. Most processes on the platform are automated, requiring little employee intervention in ordering, delivery, and payments.
Most gigs start at USD 5, but as the business scaled up, the firm introduced subscription services and increased the price for its offerings. Fiverr stated that it does not anticipate the layoffs will have a material impact on business activities in the near term and expects to reinvest a portion of the savings into the business.
Earlier in 2025, the company announced a new programme called Fiverr Go, allowing its gig workers to train AI on their own work to automate their creations with AI. Research from InvestingPro indicates that Fiverr reported its Q2 2025 earnings, showing the company is profitable, with high gross profit margins of 80.94%. The company also has more cash than debt on its balance sheet, signalling solid fundamental operations, despite stock volatility.