Squarespace cuts 19% of workforce in major restructuring
Squarespace confirmed that it is reducing its global workforce by approximately 19%, affecting around 300 employees, with product and engineering teams hit hardest. CEO Anthony Casalena described the move as a restructuring toward smaller teams and a simpler organizational structure, rather than a financial-target exercise. TechCrunch and TechSpot also describe AI-powered website builders as competitive context, but Casalena did not explicitly attribute the layoffs to AI.
The cuts are a substantial restructuring of a major website-building platform and come as AI-powered builders are changing how easily users can create websites, making the competitive context for Squarespace’s products directly relevant.
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What just happened? Squarespace, the website-building, hosting, and domain registration company that's been around for almost 25 years, is laying off 19% of its employees. Its CEO has avoided linking the layoffs to AI – something we've seen many times recently – though he did say that the organization's operational model must "adapt for the modern era."
Squarespace founder Anthony Casalena said in a memo announcing the cuts that the company needed smaller teams, more player-coaches, and a simplified organizational structure. About 300 workers will be let go, with the product and engineering teams most affected.
The CEO emphasized that the layoffs were not an exercise designed to reach a financial target, but a restructuring based on how Squarespace needs to work going forward.
The memo notes that Squarespace's core business has been to allow people to establish an online presence even if the technology made doing so a challenge. But it acknowledges that the tech has changed enormously over the last 12 months.
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