Squarespace cuts 19% of jobs as CEO admits the technology behind its business has changed enormously

Squarespace, a website-building, hosting, and domain registration company with nearly 25 years of history, is downsizing its workforce by 19%. The company's CEO, Anthony Casalena, did not explicitly link the layoffs to AI, though he acknowledged the need for the organization to adapt to the modern era. Casalena revealed in a memo that the company requires smaller teams, more player-coaches, and a simplified organizational structure.

The majority of the 300 employees who will lose their jobs are from the product and engineering teams. Casalena emphasized that the layoffs are not aimed at hitting a financial target but are a restructuring based on how Squarespace needs to operate moving forward. The memo acknowledged that Squarespace's core business, allowing people to establish an online presence, has been challenged by advancements in technology over the past year.

The company launched Blueprint AI in September 2024, a tool that generates a website with images and copy based on a customer's input about their business, desired site features, and preferred tone. In May 2024, private equity firm Permira acquired Squarespace for $6.9 billion, which rose to around $7.2 billion by the time the deal closed in October.

According to Layoffs.fyi, 93,247 tech employees have been laid off due to AI this year, with Squarespace being the latest veteran web company to announce staff cuts.