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Fiverr To Lay Off 30% Of Workforce, Change To An “AI First” Strategy

The online job marketplace's rising reliance on AI leads to major job cuts, raising concerns about the impact of automation on workers.

Allwork.Space News TeambyAllwork.Space News Team
September 16, 2025
in News
Reading Time: 2 mins read
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Fiverr To Lay Off 30% Of Workforce, Change To An “AI First” Strategy

Fiverr is not alone in this move. Other firms like Duolingo and Shopify have also embraced AI-centric strategies, with Shopify implementing a hiring policy that requires managers to prove AI cannot perform a role before hiring.

Online jobs marketplace Fiverr is preparing to cut about 250 jobs — roughly 30% of its workforce — to become an “AI First” company. CEO Micha Kaufman outlined the transformation in a letter to employees shared on LinkedIn, emphasizing a leaner, faster organization with a focus on AI-driven productivity and fewer management layers. 

The company plans to reinvest some of the savings from layoffs back into its business to support this new direction, according to The Wall Street Journal. 

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Fiverr is not alone in this move. Other firms like Duolingo and Shopify have also embraced AI-centric strategies, with Shopify implementing a hiring policy that requires managers to prove AI cannot perform a role before hiring. Duolingo initially announced plans to replace some contract workers with AI, though CEO Luis von Ahn later clarified the company does not intend to replace full-time staff.

While many companies race to integrate AI at the core of their operations, experts caution that the rapid adoption of AI may be premature. Microsoft has suggested that successful future companies will be “Frontier Firms,” where humans oversee teams of AI agents, blending human judgment with AI capabilities.

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However, mixed results from AI implementations and concerns about blindly following trends raise questions about whether businesses are moving too quickly into AI. 

Some studies indicate that peer pressure and competition are driving AI investments, potentially overshadowing thoughtful evaluation of how AI can truly benefit each company. As AI adoption accelerates, the challenge remains to balance innovation with sustainable and effective integration.

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Source: The Wall Street Journal
Tags: AILeadershipNorth AmericaWorkforce
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Allwork.Space News Team

Allwork.Space News Team

The Allwork.Space News Team is a collective of experienced journalists, editors, and industry analysts dedicated to covering the ever-evolving world of work. We’re committed to delivering trusted, independent reporting on the topics that matter most to professionals navigating today’s changing workplace — including remote work, flexible offices, coworking, workplace wellness, sustainability, commercial real estate, technology, and more.

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