Squarespace to Cut 19% of Workforce, Affecting About 300 Employees
About 300 Squarespace employees will lose their jobs as the website-building company cuts 19% of its workforce, a restructuring that will reshape teams respo...
About 300 Squarespace employees will lose their jobs as the website-building company cuts 19% of its workforce, a restructuring that will reshape teams responsible for building and developing its products.
The company has about 1,800 employees worldwide. It has not specified when the cuts will take effect. Squarespace says it is reducing staff to simplify operations, focus its priorities and move faster as it pursues its next phase of growth.
Product and engineering teams hit hardest
Most of the job losses are expected to fall on product and engineering teams, according to a companywide memo from chief executive Anthony Casalena. He wrote that the company’s operating model must adapt to changing ways of working, with smaller teams and a simpler organizational structure.
The affected staff will receive at least 16 weeks of base pay, with additional weeks based on tenure, as well as health benefits through May 2027. Employees can keep their company laptops, and Squarespace will continue supporting workers who hold employment visas.
Support for departing staff is part of the company’s plan. Squarespace spokesperson Jeff Seedman said the company was grateful for their contributions and would provide assistance during the transition.
Restructuring follows AI push
The cuts come a little more than two years after Squarespace introduced Blueprint AI, a tool that can build websites and generate copy, blog posts and product descriptions. The company’s private-equity ownership also began around that period, when Permira completed its acquisition of Squarespace.
The company has framed the layoffs as an effort to make its operations more focused and agile. The reductions raise questions about how smaller product and engineering teams will support its website platform and AI tools, but Squarespace has not announced changes to those products or described an effect on customers.
Casalena addressed remaining employees in a brief livestream after the memo was sent. The company has planned a separate all-hands meeting, where staff are due to hear more about the organizational changes and Squarespace’s next phase.
