The Painful Reset That Wasn’t So Painful for Everyone
CEO Micha Kaufman called it a “painful reset” in his announcement. Painful, mostly for the 250 people packing up. Guidance stayed intact. Profit targets pulled forward.
Teams who’ve lived through multiple exits know the playbook. When leadership says “back to startup mode,” it often means “keep the revenue, trim the people who built it.”
Kaufman was candid about the math. “We believe we don’t need as many people to operate the existing business,” he wrote. AI now handles support, fraud, and processes that were “historically not possible or too expensive.”
Translation: machines scale, and investors like the ratios.
The Great AI Job Shuffle of 2025
Fiverr isn’t alone in this pivot. The numbers tell a sobering story:
- Microsoft saved $500 million through 15,000+ layoffs while investing $80 billion in AI infrastructure
- Intel cut 5,000 US workers in July to fund AI restructuring
- Duolingo replaced contract workers with AI in April
- Salesforce disclosed that AI now performs about 50% of company work after cutting 4,000 positions
According to recent research, companies have burned nearly $40 billion on GenAI initiatives in 2024 alone, often funded by workforce reductions. Even Anthropic’s CEO has warned about potential 20% unemployment from AI displacement, though economists remain skeptical about such dramatic predictions.
The pattern is clear: hire humans to build the AI that replaces humans. It’s like training your replacement, except your replacement doesn’t need healthcare or vacation days.
The Freelancer Platform Eating Its Own
Here’s what makes Fiverr’s move particularly rich: this is a platform built entirely on human creativity and skills. Graphic designers, writers, video editors, voice actors, the very people who make Fiverr valuable are now being told their work can be automated away.
In digital media and entertainment, the magic has always been team-driven. Technology is the instrument; people play it. Treating that spark as “inefficiency” is a choice.
Kaufman expects “double or triple the output per unit of time” from remaining employees. Teams know this: sustainable productivity doesn’t come from fear-driven acceleration. It comes from believing in the mission and building systems that help.
Cut 30% and demand triple output, and you don’t get an AI-first company. You get a burnout recipe with better automation.
What This Means for Founders and Freelancers
Across media, technology, and creative work, teams carry the load. Human creativity still matters—from weekend watercolors to the systems work that keeps products moving.
But Fiverr’s move signals something larger about where we’re headed. If a platform that monetizes human skills can justify eliminating humans for AI efficiency, what does that say about the value we place on human work?
For freelancers on Fiverr, this creates an interesting paradox. The platform is betting that AI can replace its own employees while simultaneously depending on human freelancers to attract customers who… might also prefer AI solutions.
For founders, the lesson is more complex. Yes, AI can reduce operational costs and increase efficiency. But if your entire business model depends on human creativity, expertise, and problem-solving, automating away those qualities might optimize you into irrelevance.
The Humanity Behind the Metrics
Let’s pause the business analysis for a moment. Behind every layoff statistic is someone’s mortgage payment, someone’s kids’ college fund, someone’s sense of professional identity. The phrase “painful reset” sanitizes what is fundamentally a human crisis disguised as strategic innovation.
Many of us have seen both sides—the relief of exits and the stress of uncertainty, the challenge of starting over, the impact on families. These 250 people at Fiverr aren’t just efficiency metrics. They’re professionals with valuable skills who helped build something meaningful.
Kaufman wrote that AI “forces us to rediscover our humanity.” That line lands oddly against this playbook.
Where We Go From Here
The AI shift isn’t inherently wrong. It should make work more meaningful. The question is how.
Two practical paths:
- Use AI to enhance team output and learning. Codify playbooks. Pair humans with copilots. Automate the dull stuff. Share what works across the org.
- Specialize and go deep. Become the watercolorist, the forensic editor, the niche analyst. Build a small, loyal following that values judgment over volume.
Leaders still choose: slash and squeeze, or amplify and teach. The latter tends to compound—and burn fewer people out.
Whether you’re running a startup, freelancing on platforms, or simply tracking the future of work, the goal isn’t to be AI-first. It’s to stay human-centered and use the tools well.
Results may vary. Dignity shouldn’t.
Frequently Asked Questions
Why did Fiverr lay off 30% of its workforce?
Fiverr cut 250 employees (30% of staff) to pivot toward an “AI-first” infrastructure. CEO Micha Kaufman stated that AI can now handle many processes previously done by humans, including customer support and fraud detection, making the company believe it doesn’t need as many people to operate.
What does “AI-first” mean for freelancers on Fiverr?
While Fiverr is automating internal operations, the platform still depends on human freelancers to provide services to customers. However, this creates a contradiction where the company is betting against human workers internally while relying on them for revenue generation.
Is this part of a larger trend in tech companies?
Yes. Major companies including Microsoft, Intel, Duolingo, and Salesforce have all announced significant layoffs while increasing AI investments in 2025. Companies have spent nearly $40 billion on GenAI initiatives, often funded through workforce reductions.
How will this affect Fiverr’s business performance?
Fiverr maintained its 2025 financial guidance and expects to hit profit targets a year ahead of schedule. The company anticipates significant cost savings from reduced payroll while maintaining revenue through AI-enhanced operations.
What should freelancers do if they depend on platforms like Fiverr?
Diversify income streams across multiple platforms and direct client relationships. Focus on developing uniquely human skills that are harder to automate, and consider how AI tools can enhance rather than replace your creative capabilities
About Miles
Miles Spencer is currently CEO and a founder of Reflekta.ai, a Soul Tech company that bridges generations through fully interactive digital legacies. A multi-exit entrepreneur, investor, and storyteller, he is also the author of the Amazon bestseller A Line in the Sand. As former co-host of PBS’s MoneyHunt, Miles has spent his career at the intersection of media, technology, and human-centered narrative. With Reflekta, he is pioneering a new way for families to preserve voice, memory, and values—turning stories into dynamic, spontaneous connections that endure across lifetimes