Layoffs Announced at Freelance Platform Fiverr, Impacting AI Specialists
In a significant shift, Fiverr, the popular platform for freelancers, has announced its transformation into an "AI-first" company. This transformation comes with the layoff of approximately 250 full-time staff members, representing about 30% of the company's workforce.
The CEO of Fiverr, Micha Kaufman, made the announcement in a company-wide email in May, stating, "AI is coming for your jobs." Kaufman further explained his vision in a podcast appearance on 20VC, expressing his desire to turn Fiverr into a leaner, more modern company with a focus on artificial intelligence.
Kaufman's goal is to double or even triple the output per unit of time, while maintaining the same high quality, for both the platform's internal operations and the services offered to its users. He encourages staff to automate as much of their job as possible. However, his comments may raise concerns among Fiverr employees about job security and the company's commitment to its workforce.
Despite these changes, Fiverr's commitment to empowering freelancers and democratizing access to opportunities remains steadfast. The company's new Fiverr Go platform includes a suite of AI tools designed to streamline the freelancing process and make it more efficient.
However, some freelancers who sell services on Fiverr, such as web design, have expressed concerns about the company launching an AI webpage builder. This could potentially impact their business, but the company has not provided specific details on how the AI tools will be integrated into the platform.
Kaufman's approach to the transformation has been described as controversial. In a June appearance on the podcast 20VC, he expressed dissatisfaction with employees who don't want to work and may be a burden on society. This sentiment, coupled with the layoffs, has raised questions about the company's approach to its workforce.
Fiverr, founded in 2010, is a 16-year-old company returning to "startup mode," according to Kaufman. The company previously ran an ad campaign claiming, "nobody cares" if work is completed by a person or AI, reflecting its commitment to embracing technology and automation.
As Fiverr moves forward with its transformation, it remains to be seen how the changes will impact both the company and its freelancers. The freelancers who use Fiverr for small gigs should not worry about their business being impacted during the transformation, but they may need to adapt to the new AI tools and changes in the platform.
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