Core Viewpoint - Fiverr is undergoing a significant transformation to become an "AI-first" company, which involves laying off 250 employees, approximately 30% of its workforce, as part of a restructuring effort aimed at enhancing productivity and efficiency through AI integration [2][3][4]. Group 1: Company Restructuring - The layoffs are part of Fiverr's strategy to streamline operations and reduce management layers while increasing employee productivity through AI [2][4][5]. - Fiverr's CEO, Micha Kaufman, emphasized the need for a "painful reset" to adapt to the evolving labor market and the capabilities offered by AI [7][8]. - The company aims to return to a startup-like model, focusing on speed, flexibility, and a flatter organizational structure [8][9]. Group 2: Financial Implications - The layoffs are expected to save Fiverr approximately $30 million annually, with some funds being reinvested into AI talent recruitment [5][6]. - Fiverr has reaffirmed its revenue guidance for Q3 2025, projecting revenues between $425 million and $438 million [4]. - The company anticipates achieving a long-term adjusted EBITDA margin of 25% by 2026, one year ahead of the original target [4][5]. Group 3: Market Context and Reactions - Fiverr's market value peaked at around $11 billion in February 2021, but its stock price has significantly declined to approximately $23 per share at the time of the announcement [3][4]. - There is skepticism among freelancers on the platform regarding the impact of AI on their work, with concerns that AI could undermine the value of human creators [10][11]. - The company's shift towards AI is part of a broader trend in the tech industry, with other companies like Duolingo also adopting similar "AI-first" strategies [11].