Fiverr Goes All-In on AI, Cuts Staff and Returns to 'Startup Mode'

Fiverr is undertaking the largest transformation in its 16-year history, eliminating approximately 250 positions across departments as it reshapes itself for the artificial intelligence era. The online marketplace described the workforce resizing as a deliberate "reset" designed to accelerate its transition to an AI-first business model and return to its entrepreneurial roots.

Founder and CEO Micha Kaufman told employees that the company needs to operate more like it did during its startup years. "Our infrastructure was built over the course of many years, and it is not about just adding more people to build on top of it; it is about simplifying it. This is a different skill and a different mindset. It requires going back to startup mode," he wrote in a company-wide letter.

The transformation centers on leveraging smaller teams equipped with AI tools to achieve what Kaufman called "10x productivity." This approach represents a fundamental shift from traditional scaling methods that emphasized adding personnel to expand capabilities. Instead, Fiverr is betting that advanced AI systems can enable dramatically enhanced output from leaner organizational structures.

The company pointed to internal AI initiatives as proof of concept for this new operational model. Neo, Fiverr's AI-powered project matching system, uses natural language processing to automatically connect buyers with appropriate freelancers. Fiverr Go provides AI-assisted project scoping and pricing recommendations, while Dynamic Matching leverages algorithmic analysis to optimize marketplace efficiency without human intervention.

These technological implementations demonstrate how AI has matured from experimental tools to core business infrastructure. Fiverr's customer support operations now use machine learning algorithms that consolidate knowledge bases and reduce response times, handling routine inquiries while escalating complex issues to human agents. The marketplace integrity and fraud detection systems analyze transaction patterns and user behavior in real-time with greater accuracy than manual review processes.

The move puts Fiverr alongside companies like Dropbox, Intuit, and Google that have restructured around AI capabilities, arguing that smaller AI-enhanced teams can accomplish more than larger traditional workforces. However, Kaufman frames the decision as conviction rather than necessity, emphasizing that Fiverr has already successfully embedded AI into its platform and operations.

The startup-mode approach eliminates management layers and reduces organizational complexity, enabling engineering teams to iterate more rapidly on AI system improvements and product development. This flatter structure mirrors early-stage company operations where technical decision-making proceeds without extensive bureaucratic processes that typically develop as companies scale.

For Fiverr's community of freelancers and buyers, management emphasized that marketplace services will continue without disruption. "Rest assured that your business on Fiverr won't be impacted in any way throughout this transformation," Kaufman assured users. The company committed to providing comprehensive support for departing employees, including severance packages, extended healthcare, and career transition assistance.

The transformation highlights a broader challenge facing digital platforms: while AI reduces the need for large headcounts, implementing its full potential requires fundamental architectural changes rather than simple tool additions. Fiverr is building what Kaufman described as "a modern, clean, AI-focused infrastructure from the ground up."

For remaining employees, Kaufman promised more direct working relationships with leadership and opportunities to shape the company's next chapter. He positioned the restructuring as a pivot to faster, more agile operations rather than a pullback, telling employees: "Sixteen years ago, Fiverr reimagined the way the world works. Today, with AI reshaping everything around us, we have the privilege to do it again."