Squarespace cuts 19% of workforce amid restructuring and AI focus

Squarespace, a website-building platform, is reducing its global workforce by approximately 19%, affecting around 300 employees, according to TechCrunch and The Verge. This move is part of a broader organizational restructuring aimed at simplifying operations and sharpening company priorities.

A spokesperson for Squarespace told The Verge that the layoffs will help the company move faster as it positions itself for its next growth phase. Impacted employees will receive 16 weeks of base pay and healthcare benefits through May 2027.

The layoffs come after Squarespace's significant push into artificial intelligence technology. In 2024, the company launched Blueprint, an AI tool that assists with building websites and generating content such as copy, blog posts, and product descriptions, as reported by both outlets.

The restructuring reflects changes in the website-building industry driven by generative AI advancements. Competitors like Wix and Google have introduced AI-powered tools, and investor interest in AI-native website builders has grown substantially.

Squarespace was founded in 2004, went public in 2021, and was acquired by private equity firm Permira around the time it launched its AI initiatives, according to The Verge. The company has faced challenges maintaining strong public market enthusiasm since its IPO.