Fiverr Cuts 250 Jobs as It Pivots to an “AI-First” Strategy, Joining a Growing Trend in Tech

Fiverr is laying off 250 employees, about 30 percent of its workforce, as part of a sweeping shift to become an “AI-first company.” CEO Micha Kaufman confirmed the move in an essay posted on X, calling it a return to “startup mode.”

The Register, which first reported the layoffs, noted that Fiverr’s move is far from unique in 2025. Several tech companies, including language-learning platform Duolingo, announced similar “AI-first” pivots that come with significant workforce reductions.

In his essay, Kaufman said the transformation would make Fiverr “leaner, faster, with a modern AI-focused tech infrastructure, a smaller team, each with substantially greater productivity, and far fewer management layers.” The company has already integrated AI into areas like customer support and fraud detection, and Kaufman argued that these changes mean Fiverr doesn’t “need as many people to operate the existing business.”

The layoffs add a layer of irony to Kaufman’s earlier comments on AI. In May 2025, during an interview with CBS News, he advised workers to “automate 100 percent” of their roles using AI, insisting that doing so would not make them replaceable because human employees still bring “non-linear thinking” and “judgement calls.” For the 250 staff members affected this week, that reassurance has not held up.

The scale of the cuts is smaller than those at larger firms. Workday, for example, eliminated 1,750 roles in February 2025 as it too restructured around AI. Still, for employees, the result is the same: more responsibilities shouldered by fewer people, a dynamic becoming increasingly familiar across the tech industry as automation reshapes staffing needs.

Different Paths in the AI-first Era

Fiverr’s AI-first gamble highlights a broader split in how companies are navigating the technology shift. While some, like Fiverr and Duolingo, are embracing AI as a replacement for large chunks of their workforce, others are focusing on augmentation rather than substitution. Microsoft and Salesforce, for instance, have leaned into AI by building copilots and automation tools aimed at supporting employees rather than replacing them outright.

The contrast reflects an unresolved debate in Silicon Valley: should AI serve as a complement to human workers or a justification for streamlining them out of the picture? Fiverr is squarely in the second camp, betting that leaner operations and higher productivity per employee will create long-term shareholder value.

Yet there are risks. Gig economy platforms thrive on creativity and human connection, and industry analysts warn that a fully AI-driven approach could alienate both workers and clients who value human oversight. Rivals like Upwork, while also investing heavily in AI, have so far avoided mass layoffs, positioning their AI tools as enhancements to freelancer capabilities rather than wholesale replacements.

Fiverr’s layoffs also play into a larger divide about AI’s impact on jobs. CEOs like Anthropic’s Dario Amodei have warned that AI could displace half of all entry-level white-collar positions within a decade, while Nvidia’s Jensen Huang has countered that AI will create new categories of work. Despite those differing views, most analysts agree that the technology is already eroding job security in areas where tasks can be automated.

If its AI-first strategy delivers greater efficiency and customer satisfaction, Fiverr could establish itself as a model for leaner, tech-driven gig platforms. But if the move alienates freelancers or clients who see less value in an AI-heavy marketplace, it risks opening the door to competitors who balance automation with human-centered services.

The outcome may signal the future direction for mid-sized tech firms navigating similar pressures — whether AI will serve primarily as a tool for empowering workers or a mechanism for cutting them loose.