Exclusive: Squarespace layoffs fall mostly on product and engineering

Squarespace is cutting about 19% of its workforce, or around 300 employees, as the website builder restructures. The mass layoffs primarily impact the company's product and engineering teams, though the firm has dismissed claims that the reductions are tied to its expansion in AI infrastructure. Reports of the job cuts first emerged on the anonymous workplace app Blind, where speculation suggested the layoffs were driven by plans to bolster AI capabilities.

Squarespace, however, maintains the restructuring is aimed at streamlining operations, refocusing priorities, and accelerating growth. The company stated that departing employees will receive at least 16 weeks of base pay and continued healthcare benefits until May 2027. The website platform, which employs approximately 1,800 people, was acquired by private equity firm Permira in a deal valued at $7.2 billion in October 2024.

Permira did not comment on the layoffs. In 2023, Squarespace unveiled Blueprint AI, a tool leveraging artificial intelligence to help users create websites and generate content.