Fiverr International (FVRR), the popular online marketplace for freelance services, is undergoing a major overhaul, cutting roughly 250 jobs across various departments. According to a letter from CEO Micha Kaufman to employees, this restructuring is a move to reposition the company as an “AI-first” organization. Following the news, Fiverr stock dipped about 4%, reflecting investor caution amid the shakeup.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Shift Toward Leaner, Smarter Company
CEO Micha Kaufman called the move a fresh start to make Fiverr leaner, faster, and more focused on using AI across its platform. “We’re going back to startup mode,” Kaufman wrote in a letter to employees, stating the need for speed, agility, and fewer management layers. Fiverr aims to boost efficiency and better align with the evolving market demand.
The company has already begun integrating AI across its platform, from customer support and fraud detection to dynamic matching and marketing. These tools have helped automate key processes, reduce operational overhead, and improve user experience.
FVRR Aims to Reinvest Savings and Boost EBITDA
Fiverr plans to reinvest part of the savings from its recent layoffs into key growth areas—hiring AI-native talent, training existing employees, and expanding into fast-growing verticals and enterprise markets. The remaining savings will go toward boosting its adjusted EBITDA.
As a result, Fiverr now anticipates achieving a long-term adjusted EBITDA margin of 25% by 2026, a full year ahead of its original target.
Despite the job cuts, Fiverr has reaffirmed its financial guidance for the third quarter and full-year 2025, signaling confidence in its streamlined strategy.
Is FVRR a Good Stock to Buy?
Turning to Wall Street, Fiverr stock has a Moderate Buy consensus rating based on six Buys and three Holds assigned in the last three months. At $31.56, the average FVRR stock price target implies a 37.64% upside potential.
