Sept. 15 (Reuters) – Israel-based Fiverr International has fired 30% of its workforce, a company spokesperson said Monday as the online services market doubles artificial intelligence to automate systems and streamline operations.
The cut, which impacts 250 employees, is part of a restructuring plan announced by Fiverr CEO Micha Kaufman, which aims to invest heavily in AI and incorporate technology into the company's platform.
The company had 762 employees as of December last year.
“We're beginning to transform Fiverr into a faster, faster, modern AI-centric technology infrastructure, smaller teams, each of which is significantly more productive and far less management tier,” Kaufman said in a letter to his employees.
Layoffs reflect similar moves by large tech companies to spend substantial resources on AI agents and machine learning to automate customer care and logistics operations.
It's not clear what kind of work it will affect, but Fiverr operates a self-service digital marketplace where freelancers can connect with businesses and individuals who need digital services such as graphic design, editing and programming.
Most processes on the platform are done with minimal employee intervention as orders, delivery and payments are automated.
The company's name comes from most gigs that start with $5, but as the business grew, the company introduced subscription services and raised the bar for service prices.
Fiverr said he does not expect employment to have a significant impact on business activities across the market anytime soon, and he does not plan to reinvest some of the business's savings.
(Reporting by Zaheer Kachwala of Bengaluru, edited by Alan Barona)
