Squarespace Cuts 19% of Jobs as Its CEO Points to Changing Technology

Squarespace is laying off 19% of its employees, cutting about 300 jobs mostly within its product and engineering teams. The cuts come as the website-building company adjusts its structure for what its leader calls the modern era.

Founder and CEO Anthony Casalena announced the reductions in an internal memo, explaining that the business needs smaller teams, more player-coaches, and a simplified setup. He emphasized that the layoffs are a restructuring based on how the company must work going forward, rather than an effort to hit a specific financial target.

The memo noted that Squarespace's core business has traditionally focused on helping people build an online presence despite challenging technology. Casalena acknowledged that this underlying technology has changed enormously over the past year.

While the CEO did not directly tie the layoffs to artificial intelligence, the shift mirrors wider changes in the tech industry. Modern AI website builders allow people with little technical knowledge to generate a first draft of a site simply by describing what they want.

Squarespace introduced its own AI tool, called Blueprint AI, in September 2024 to let users build sites using conversational prompts. That product launch happened around the same time the company completed its sale to private equity firm Permira for roughly $7.2 billion in October 2024, which ended Squarespace's three-year run on the New York Stock Exchange.

Squarespace is not the only veteran tech company reducing its headcount. Cloud-storage provider Dropbox also announced plans to cut 9% of its staff to refocus its growth and product priorities.

Summary

As artificial intelligence reshapes how websites and digital tools are built, veteran tech companies are restructuring their operations and reducing staff to adapt to these rapid technological shifts.