Freelance service market Fiverr recently announced that it will lay off approximately 250 employees, about 30% of its total workforce. The company's founder and CEO, Michal Kafman, stated on the social platform X that the introduction of AI technology will lead to a fundamental transformation of Fiverr, returning it to a "startup mode." He emphasized that this transition will require a painful reset process, resulting in a smaller and flatter organizational structure by parting ways with employees from different departments.
Kafman pointed out that the application of AI can "free humans from tedious manual tasks" and "open up capabilities that were impossible or too costly in history." To ease the pressure on laid-off employees, he promised severance packages and extended health insurance.
Due to concerns about AI technology, many companies have invested nearly $40 billion in this field. At the same time, other tech companies are also facing large-scale layoffs caused by AI, such as Indian service giant Tata Consultancy Services (TCS), which recently cut over 10,000 employees and increased wages for those who remained. Fiverr's latest move also seems aimed at boosting the company's stock price. In February 2021, Fiverr's market capitalization reached $11 billion, but the current stock price is hovering around $23, and it slightly declined after the layoff announcement.
Kafman warned employees as early as May this year that AI was encroaching on everyone's job. He encouraged employees to use AI to replace tedious tasks in their work, even hoping they could achieve "100% automation." He said that the management expects each employee to double or triple their output and quality per unit of time.
Finally, Kafman mentioned that AI actually forces us to rediscover humanity, emphasizing the unique value and special attributes of each individual.
Key Points:
🔹 Fiverr is laying off about 250 employees, or 30% of the total staff, to achieve an AI transformation.
🔹 The founder has promised severance packages and extended health insurance to support the laid-off employees.
🔹 Kafman encourages employees to use AI to improve work efficiency and increase output and quality.
