Fiverr International Ltd., the Israel-based online services marketplace, has announced a significant restructuring plan that will result in a 30% reduction of its workforce.
The move, disclosed on September 15, 2025, is part of Fiverr’s broader strategy to transform into an “AI-first” company.
The layoffs will affect approximately 250 employees out of the 762 staff members Fiverr employed as of December 2024.
CEO Micha Kaufman outlined the rationale behind the decision in a letter to employees, stating that the company is launching a transformation to become leaner, faster, and more productive.
“We are building a modern AI-focused tech infrastructure with a smaller team, each with substantially greater productivity and far fewer management layers,” Micha wrote.
Fiverr Layoffs: Automation and Efficiency at the Core
Fiverr’s platform already operates with minimal employee intervention, offering a self-service digital marketplace where freelancers connect with clients for services such as graphic design, programming, and editing.
Most transactions—including ordering, delivery, and payments—are automated.
The restructuring aims to deepen this automation by integrating artificial intelligence more extensively into Fiverr’s operations.
The company plans to reinvest part of the cost savings from the layoffs into AI development, focusing on platform reliability, customer experience, and operational efficiency.
This pivot mirrors similar moves by larger tech firms like Salesforce, which have invested heavily in AI agents and machine learning to streamline customer service and logistics.
Financial Performance and Market Signals
Despite the workforce reduction, Fiverr’s recent financial performance suggests resilience and potential for growth.
In Q2 2025, the company reported revenue of $108.6 million, marking a 14.8% year-over-year increase.
Services revenue surged by 83.8% to $34 million, while annual spend per buyer rose by 9.8% to $318.
However, marketplace revenue dipped slightly by 2% to $74.7 million, and the number of annual active buyers declined by 10.9% to 3.4 million.
These figures indicate that while Fiverr is experiencing some user attrition, it is successfully monetizing its existing customer base.
The company’s marketplace take rate stands at 27.6%, reflecting strong revenue generation per transaction.
Implications for Freelancers and Clients
Fiverr has assured stakeholders that the layoffs will not materially impact day-to-day operations across its marketplace.
For freelancers and clients, the shift toward AI could lead to faster service matching and improved analytics.
It may also enable more efficient digital transactions across the platform.
However, the long-term impact on customer support and platform adaptability remains to be seen.
The restructuring signals a broader trend in the freelance economy. Platforms are increasingly relying on AI to reduce overhead and improve scalability.
Fiverr’s name was originally derived from its $5 gig pricing model. Today, it represents a more sophisticated service offering that includes subscriptions and premium pricing tiers.
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