Fiverr lays off 250 employees to become ‘AI-first’ — what it means

Fiverr has announced cuts of approximately 250 employees — about 30% of its workforce — as CEO Micha Kaufman says the company is pivoting to being an “AI-first” organization. Kaufman described the move as a return to “startup mode,” aiming for a leaner, faster company with modern AI-focused tech and fewer management layers. He noted Fiverr has already integrated AI into customer support and fraud detection.

Kaufman’s earlier comments urging employees to “automate 100%” of what they do raised questions when the layoffs were announced, as many roles are now being reduced. Fiverr’s reductions are smaller in absolute terms than cuts at some larger firms (for example, Workday’s 1,750 role eliminations), but the effect is similar: more work for fewer people.

Other companies, like Duolingo, have also announced plans to become “AI-first,” making this a broader trend in tech in 2025.

Sources: Engadget (clean link): https://www.engadget.com/ai/fiverr-is-laying-off-250-employees-to-become-an-ai-first-company-215730063.html — plus coverage from industry outlets.

What do you think — is ‘AI-first’ a necessary evolution or a cover for cost-cutting? Leave a comment below.