TLDRs;
- Fiverr announced a 25% workforce cut (250 jobs) as part of an AI-first strategy to boost efficiency and innovation.
- Despite an 11% decline in active buyers, Fiverr reported 14.8% revenue growth and higher spending per buyer.
- AI-driven tools like Neo, Fiverr Go, and Dynamic Matching are central to Fiverr’s restructuring efforts.
- FVRR stock rose nearly 2%, reflecting cautious investor optimism amid industry-wide AI disruptions.
Freelance marketplace Fiverr International Ltd. (FVRR) surged nearly 2% on Monday as the company announced sweeping organizational changes.
CEO Micha Kaufman revealed that about 250 jobs, 25% of its workforce will be cut as the company doubles down on an AI-first strategy.
“The speed at which technology changes, and the possibilities it provides, are amazing and require new thinking and greater speed to stay ahead,” Kaufman wrote. “We are already one of the companies that embrace AI in everything we do, and we are reaping the benefits of what small, productive AI teams can do.”
The move marks one of the most significant shifts in Fiverr’s 15-year history, signaling its intent to become leaner, faster, and more AI-driven. The restructuring will impact departments across operations, customer care, advertising, and engineering, where artificial intelligence is already playing a central role.
AI Products Drive Efficiency Push
Fiverr has rolled out multiple AI-powered tools in recent quarters, including Neo, Fiverr Go, and Dynamic Matching, all designed to streamline the freelancer-client connection process. These technologies use AI for smarter search, personalized job recommendations, and improved client-freelancer matching, reducing friction across the platform.
The company emphasized that the layoffs are not simply cost-cutting measures but a reallocation of resources toward technology investment.
“We are building a smaller but more powerful company, one that uses AI to scale opportunities for both buyers and sellers,” Kaufman added.
Strong Earnings Despite Buyer Decline
Fiverr’s latest quarterly results showed resilience amid shifting dynamics. Q2 revenue reached $108.6 million, up 14.8% year-over-year, driven by enterprise adoption and AI-driven services.
However, the company faces headwinds. Active buyers fell nearly 11% to 3.4 million, reflecting a more competitive freelance market and macroeconomic uncertainties. Despite this drop, the average spend per buyer increased nearly 10% to $318, suggesting that while Fiverr is losing some users, its most loyal clients are spending more.
Profitability also improved. Adjusted EBITDA rose to $21.4 million, compared with $17.8 million a year earlier, highlighting operational efficiency. Fiverr reaffirmed its 2025 revenue guidance of $425–$438 million and projected EBITDA between $84–$90 million, signaling confidence in its AI-first transformation.
Broader AI Shift in Tech Sector
Fiverr’s restructuring aligns with a wider trend across the technology industry, where artificial intelligence is reshaping employment and business models. Companies like Meta, Intel, and Microsoft have also announced significant layoffs in recent months, attributing changes to AI deployment and automation.
This shift is affecting not only existing employees but also new graduates entering the tech job market. According to the Federal Reserve Bank of New York, unemployment for computer science majors has risen to 6.1%, while engineering majors face 7.5% jobless rates, figures far higher than historical averages.
Industry experts say AI is creating a two-tier workforce where experienced professionals thrive with AI tools, while entry-level opportunities shrink due to automation of routine tasks. Fiverr’s restructuring underscores how even freelancer-focused platforms are adapting to this new reality.
Market Outlook
With its AI-focused revamp, Fiverr positions itself at the intersection of efficiency and innovation. Investors appear optimistic, with shares climbing nearly 2% after the announcement.
The question remains whether this leaner structure can offset buyer declines and drive long-term growth. If Fiverr succeeds in embedding AI deeply into its marketplace, it may emerge as one of the few freelancing platforms capable of scaling sustainably in the age of automation.
