Fiverr layoffs

Photo Credit: BandLab

Fiverr International (NYSE:FVRR) has announced a major workforce reduction for the freelance platform. CEO Micha Kaufman took to LinkedIn to reveal 30% of staff will be laid off—around 250 positions—as the company pivots to being ‘AI first.’

This marks a sharp contraction for the freelance sector, of which Fiverr has grown steadily since its NYSE listing in 2019. Musicians and voice actors often posted on the site to garner freelance income between big jobs. Podcast intros/outros, indie game music, commercial jingles, local radio voice talent, and more are just some services offered by artists on the platform.

”For months, I’ve been sharing my thoughts on how AI is reshaping not only work but also the increasingly immersive ways humans and machines interact,” Kaufman said in his letter on LinkedIn. “This will lead to fundamental changes in how societal activities are organized and how businesses operate. The speed at which technology is changing, and the possibilities it brings, are incredible and they demand new thinking and higher velocity to stay at the top of our game.”

“This transformation requires a painful reset, and as we make it, we will be parting ways with approximately 250 team members across the different departments, resulting in a smaller and flatter organization. This is possibly one of the toughest decisions that I have had to make, especially as Fiverr is such a magical place with a strong sense of belonging and mission-driven culture.”

While Fiverr is downsizing, major competitor Upwork Inc. (NASDAQ:UPWK) has performed better in 2025, posting record Q2 revenue as it pivots to AI-backed enterprise services. Upwork’s strategy has helped it retain both enterprise and creative clients, while Fiverr’s core ‘gig’ model—previously ideal for small creative jobs—has not matched Upwork’s results in this landscape shifted by AI.

Fiverr says it will pivot to being AI first and accelerate its development of high-margin, AI-driven offerings. Freelancers in the creative community who provide services on Fiverr have been told their day-to-day business won’t be impacted by the layoffs.