Fiverr, the digital freelance platform, is poised to make substantial cuts to its workforce as the company redirects its emphasis toward AI, as indicated in a communication from the CEO to staff. According to the Wall Street Journal, the job reductions will impact around 30 percent of Fiverr’s personnel.
“The resizing and realignment initiative will enable Fiverr to chase growth prospects as a more streamlined entity with an AI-centric framework and approach,” Fiverr mentioned on its investor relations site.
Founded in 2010, Fiverr originally provided a space for freelancers such as writers, musicians, and artists to offer services starting at $5. It subsequently diversified to permit freelancers to present various service levels and charge beyond the initial $5.
In a letter dated September 15, Fiverr CEO Micha Kaufman recognized the difficulties involved in transitioning to an “AI-first company”:
“Today, we are embarking on a transformation for Fiverr to evolve into an AI-first organization that’s leaner, more agile, with a contemporary AI-driven technical framework, a reduced team, each wielding significantly higher productivity, and diminished management layers. This transformation necessitates a painful reset, and in the process, we will part ways with approximately 250 team members across different divisions, leading to a smaller and flatter organization. This is perhaps one of the most challenging decisions I have encountered, particularly since Fiverr is such a unique place with a strong sense of community and purpose-driven culture.”
Recently, Fiverr has been promoting the adoption of AI among its freelancers. Earlier this year, Fiverr unveiled a program called Fiverr Go, enabling gig workers to train AI using their work to automate tasks. The company advertised this AI service through commercials featuring character actor Brett Gelman, recognized for his role in Stranger Things.
In a company-wide email from May, Kaufman candidly alerted staff regarding the company’s shift toward AI.
“AI is coming for your jobs,” Kaufman communicated to employees. “Indeed, it’s also coming for my job. This is a wake-up call.”
Over the years, Fiverr’s freelance community has voiced concerns about the growing presence of users accomplishing gigs with generative AI.
“Is AI undermining the TRUE creators?” queried one freelancer on Fiverr’s community forums last year after observing a downturn in their business on the platform.
Fiverr seemed to minimize AI apprehensions in an October 2024 advertisement featuring a musical piece titled “Nobody Cares,” implying that there’s little concern if a freelance artist or creator utilizes AI.
Now, in its pursuit of AI, Fiverr is set to lay off 250 employees.