Fiverr's Founder Contemplates 15 Years of Disruption, Emphasizing the Importance of AI-Driven Smaller Teams Shaping the Company's Future.
In a significant move, Fiverr, the global marketplace for freelancers and businesses, has announced a restructuring plan that will affect approximately 250 employees, representing about 30 percent of its workforce. This decision, made by Micha Kaufman, the founder and CEO of Fiverr, is part of a shift towards a more AI-focused infrastructure.
The restructuring aims to create leaner teams, flatter structures, and a more agile work environment. Kaufman frames this decision as a re-architecture of Fiverr, echoing the early startup years when he worked more directly with teams.
The move comes as Fiverr seeks to leverage AI in various aspects of its operations. AI-driven fraud detection, customer support, and marketplace matching have already shown improvements due to the implementation of AI. Kaufman has become convinced of the potential of AI after seeing its impact on internal projects like Neo, Fiverr Go, and Dynamic Matching.
Fiverr was founded in 2009 with the aim to productize and sell services like products. Over the years, it has grown into a global marketplace used by millions of freelancers and businesses. The restructuring is not just about doing the same work with fewer people, but redesigning the work itself with AI as a multiplier, aiming for '10x productivity'.
For those staying, the promise is a return to closeness and speed in the work environment. Fiverr has committed that services will continue without disruption for its millions of freelancers and buyers.
The company also reaffirmed its Q3 and FY25 guidance. Some of the savings from the restructuring will be reinvested into AI and growth, while the rest will flow to profitability. Fiverr's long-term adjusted EBITDA margin target of 25 percent will be achieved in 2026, a year ahead of schedule.
Fiverr is offering severance, extended healthcare, and career transition support to the affected employees. Kaufman views this decision as necessary to keep Fiverr at the forefront of work in a rapidly changing world. He aims for Fiverr to be among the companies that reinvent themselves successfully by combining financial discipline with a cultural reset and visible AI proof points.
The move by Fiverr is part of a wave of AI-related restructurings across the tech industry. The goal is to make the marketplace smarter, more efficient, and ultimately more valuable for its users. By embracing an AI-first model, Fiverr aims to stay competitive and continue to provide the best possible service to its users.
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