Fiverr Encouraged Its Employees to Embrace AI, Then Betrayed Them

Fiverr, a freelance gig platform, is letting go of 250 employees, equating to 30% of its workforce, as it transitions to AI, following the CEO’s advice for staff to adopt AI to maintain relevance. CEO Micha Kaufman openly declared the layoffs on a social media platform, highlighting the irony of a company that facilitates freelance work now terminating its staff due to AI. This move has sparked criticism, with some questioning the need for freelancers when AI can perform tasks quicker and cheaper. There is skepticism about the future employment prospects for Fiverr’s laid-off workers. Kaufman justified the decision by emphasizing a shift towards an “AI-first” approach with a leaner workforce, aligning with viewpoints shared by other business leaders on AI-driven workplaces. Previously, Kaufman had advised staff to embrace AI to avoid obsolescence amidst significant job market disruptions caused by technological advancements. In 2025, over 10,000 job losses have been attributed to AI integration, affecting tech workers prominently. Some critics believe these layoffs might be shortsighted as AI hasn’t significantly boosted profits and could hinder nurturing future company leaders. Nevertheless, dissatisfaction with Kaufman’s decision remains vocal on social media platforms.