Squarespace, the website creation platform, has announced it will be reducing its workforce by approximately 20%, impacting hundreds of jobs.
A spokesperson for Squarespace, Jeff Seedman, verified the impending layoffs to TechCrunch. The news was initially covered by The Verge.
“We are reorganizing our structure and downsizing our global workforce by roughly 19%, which accounts for around 300 positions,” stated Seedman. “These adjustments are designed to streamline our operations, refine our focus, and empower the company to progress more swiftly as it prepares for the next stage of growth.”
The website building landscape has dramatically evolved recently, driven largely by advances in generative AI. ‘Vibe-coding’ website builders, which allow users to create functioning front-end designs with minimal input, have disrupted the traditional sector, enabling easier site creation.
This new approach to website creation is becoming increasingly important in the industry. In the previous year, competitor Wix acquired Base44 for $80 million. Other similar platforms, like Lovable, have attracted considerable investor attention, with Lovable securing a $400 million Series C funding round in August, bringing its valuation to $13.3 billion. Additionally, Google has unveiled Stitch, a feature that enables users to quickly produce user-interface designs.
Squarespace is also making significant strides into the AI sector. In 2024, the company introduced an AI tool named Blueprint and recently announced Forma, an upcoming platform that is AI-native and available for users to join a waitlist.
Founded in 2004, Squarespace went public in 2021 with a valuation of $10 billion. However, in the following years, it struggled to maintain strong interest in the public market. This led to the decision to go private again through a $7 billion deal with private equity in 2024.
This report has been updated to correct an earlier statement about the availability of AI tools from Squarespace.
