There have been cases of companies that have recently announced AI-inspired redundancy, but there have been few, if any, in advance, about the need for Fiverr to lean towards emerging technologies, like last week.
Tel Aviv Headquarted Freelance Provider Fiverr, which operates in approximately 160 countries, including Australia, is undergoing a “painful reset” that will result in around 250 employees redundant as it transforms into an “AI-First Company.”
At the time of writing, it was not clear which employees would be redundant or create a place to live worldwide.
In a post of xFiverr founder and CEO Micha Kaufman wrote that the company will “return to startup mode,” saying the speed at which technology is changing and the possibilities it will bring are incredible, demanding new thinking and higher speeds to stay at the top of the game.
To this end, Fiverr writes, “It's transforming into an AI-first company. It's faster, faster, more focused technology infrastructure, smaller teams, each with much more productivity and much less management layers.”
“This transformation requires a painful reset, and as we can do it, we say goodbye to about 250 team members from different departments, making it a smaller, flatter organization,” Kaufman said.
“This is one of the toughest decisions I had to make, especially as Fiverr is a very magical place with a strong sense of belonging and a mission-driven culture.”
Kaufman went on to witness first-hand how Fiverr carried out many AI projects across the organization, and how AI can automate and streamline processes, free humans from manuals and boring tasks, and unleash features that were “historically impossible or expensive.”
“When we assess what has been done and what can be done, we don't think there's much to need to run our existing business. As we saw in customer support, it's about efficiency, just as AI helps teams integrate their knowledge and reduce SLAs for ticket resolution,” he said.
“Otherwise, there's more efficient and performance improvements. For example, AI work that focuses on market integrity and fraud detection. The opportunity to run a more lean organization allows us to work closer as a team. Personally, there are fewer reporting layers, fewer time to sit together, and fewer reports.”
Regardless of what decisions are made and the impact on human employment, it is difficult not to respect the transparency that Kaufman and Fiverr have made, along with a detailed explanation of how the company expects to evolve and grow.
In a constant market where new emerging technologies, namely AI, are keeping the way companies operate and discovering efficiency, there is thick and faster redundancy, from university campuses to listed entities.
Some businesses announce redundancy acknowledge the reality of AI. We are looking for Holdings (the parent company of Endy and Glassdoor) CBA (It had to be back down with the planned cuts in the final stages) but other companies refused to see job openings occur. Atlassian and Telstra (This is not to say that these companies are actually replacing workers with AI, but that speculation has led them to issue such clarifications).
However, unlike the above companies that recognized and reduced the reality of AI, Fiverr appears to be more easily leaning towards that new reality.
Kaufman wrote: “We are already one of those companies that embrace AI for everything we do, and we are enjoying the benefits of what small, productive AI teams can offer, and we need to accelerate this work.
“Our infrastructure has been built over the years. It's not just about adding more people, it's about simplifying it. This is a different skill and a different way of thinking. You need to go back to startup mode.”
To those leaving Fiverr, Kaufman wrote: “Thank you! We don't take your contributions for granted and will do everything we can to provide comprehensive support.
“I am deeply grateful to have made today's Fiverr, both internally and externally, and I am extremely excited about what will happen next.”
In most cases, if AI evolves to a level where many human roles are no longer needed, it is likely that it is not only expected and demanded in advance honest communication about how and why companies make certain decisions.
Jerome Doraisamy is the Managing Editor for Commentum Media's Professional Services Suite, covering Weekly, HR Leader, Daily Accountant and Accounting Time. He has worked for Momentum Media since February 2018 as a journalist and podcast host. Jerome is also the author of the Wellness Doctrines Book Series, NSW Admission Recruitment, and the board of directors of the Minds Count Foundation.
