Due to the emergence of AI, Israeli freelancer platform Fiverr (NYSE: FVRR) is laying off 250 employees, or 30% of its workforce. The majority of the company's employees are in Israel - 637 out of 762 as of the end of 2024. The company has also reaffirmed its forecast for the third quarter and 2025, and updates that it will reach the adjusted EBITDA target of 25% in 2026, a year earlier than expected.
Fiverr cofounder and CEO Micha Kaufman wrote to employees that AI is reshaping not only work, but also the way humans and machines communicate. In his assessment, this will lead to fundamental changes in social activities and business operations. "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."
Kaufman detailed several of the company's activities, noting that the aim is to accelerate this way of operating. "We can and should dream bigger and build Fiverr faster as a modern AI-centric infrastructure," he added. Kaufman noted that Fiverr is launching a transformation plan to make the company AI-centric, leaner and faster, with fewer layers of management. "Change requires a painful reset," Kaufman wrote. "We will be saying goodbye to about 250 team members across departments. The result will be a smaller, flatter organization."
Kaufman added that this was probably the hardest decision he has had to make, "Especially because Fiverr is a magical place with a great sense of belonging and a mission-focused culture." According to Kaufman, Fiverr’s infrastructure was built over many years and needs to be simplified. "It’s a different skill set and a different approach. It requires going back to a startup state," he wrote.
Fiverr's share price fell 3.86% on Wall Street yesterday, giving a market cap of $846.9 million. The share price has weakened sharply in recent years due to concerns that AI applications will harm the company.
Published by Globes, Israel business news - en.globes.co.il - on September 16, 2025.
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