Fiverr’s Bold AI Strategy Reshapes the Future of Work

Last Monday, Fiverr announced it would cut about 30% of its workforce. The move surprised many, but CEO Micha Kaufman made it clear. This was not about a financial crisis. It was about a reset. The goal is to turn Fiverr into an “AI-first organization.” He said the new structure will be leaner, flatter, and faster.

The decision puts Fiverr at the heart of a much larger story. Artificial intelligence is reshaping both platforms and workers. It affects the tools that connect people to jobs. It also affects the freelancers who depend on these systems.

Kaufman called the change a strategic pivot. But it also reflects something bigger. The future of work itself is shifting. A company built on global opportunity is now reinventing its own operations. This highlights the dual role of AI. It is a productivity booster. But it is also a force of organizational change.

In a letter to staff, Kaufman wrote:

“As we evaluate what has been done and what can be done, we believe we don’t need as many people to operate the existing business.”

Beyond “Strategic Restructuring”

Fiverr will use part of the savings to invest in new growth areas. It will also focus on keeping profitability strong. The company confirmed its guidance for Q3 and the full year. It expects to reach a 25% adjusted EBITDA margin by 2026, one year earlier than planned.

Kaufman emphasized the power of AI-native teams. Small groups with the right tools now achieve what used to take entire departments. That shift, he said, is too powerful to ignore.

This aligns with Fiverr’s push to deploy AI across operations. Tools like Neo, the AI project matcher; Fiverr Go, a personalized AI for creators; and Dynamic Matching, its marketplace optimizer, are already active.

AI has also made customer support faster. Resolution times are shorter. Fraud detection and marketplace security are stronger thanks to machine learning. Kaufman told me these improvements show clear results.

Empowering Freelancers in the AI Era

While headlines focus on layoffs, Fiverr’s leadership frames this moment as a pivot toward creator empowerment. Kaufman said the freelance economy is moving into a new phase.

“AI won’t replace human creativity. It will make it stronger. Freelancers will scale their talents while keeping control of their work.”

That idea echoes what is happening elsewhere. At Salesforce, CEO Marc Benioff said AI already handles 30% to 50% of the work in engineering, marketing, and support. He called it a digital labor revolution.

In June, Business Insider reported that Salesforce’s AI reached 93% accuracy in customer inquiries. Big clients like Disney are early adopters.

The lesson is clear. Across industries, AI is not framed as a full replacement. Instead, it is seen as a tool that augments human capability, scales expertise, and delivers higher quality outcomes.

Platform Economics

For Fiverr, the larger bet is on platform transformation. AI will free up resources and speed up innovation. From matching freelancers with clients to ensuring quality and trust, the company wants AI to power the core of its infrastructure.

Kaufman reflected on the company’s journey:

“Fifteen years ago, we built Fiverr to change how the world works together. Today, AI is changing that landscape. We’re rebuilding to lead that change, not just react to it.”

This speaks to a broader AI adoption trend. The difference lies between what AI can do in theory and what it achieves in practice. The true winners will be those who turn capabilities into long-term advantages.

The Real Test Ahead

The coming year will be critical. If Fiverr’s AI-first transformation succeeds, freelancers could take on projects once done by whole teams. Platforms could run learners and launch new service categories.

But the risks remain. Fiverr must keep quality high, trust strong, and adapt to regulation. Kaufman acknowledged these challenges. He also stressed support for departing staff. At the same time, he painted a vision of growth for those who remain.

“We’re not tearing down what we’ve built. We’re laying the groundwork for its next evolution.”

The balance is delicate. It is a tension between innovation and community. This is not just Fiverr’s challenge. It is the challenge for the future of work itself. AI will reshape how value is created, shared, and sustained. The platforms that succeed will be those that use technology to strengthen human connection.

For Kaufman and Fiverr, this is the opportunity they are now pursuing.

FAQs

1. Why did Fiverr cut 30% of its workforce?

The layoffs are part of a shift to become an AI-first company, not because of financial struggles.

2. How is Fiverr using AI today?

Fiverr uses tools like Neo, Fiverr Go, and Dynamic Matching. AI also powers fraud detection, customer support, and marketplace integrity.

3. How will this affect freelancers?

AI will help freelancers scale their creativity, handle bigger projects, and maintain control while boosting productivity.

4. What financial goals has Fiverr set?

The company aims for a 25% adjusted EBITDA margin by 2026, one year ahead of its earlier target.

5. What challenges could Fiverr face in this transition?

Key challenges include maintaining quality, building trust, supporting workers, and navigating regulations while adopting AI at scale.

Fiverr is cutting 30% of its workforce to become an AI-first company