Squarespace, a web company that helps customers build and host their own websites, will lay off about a fifth of its employees, impacting hundreds of jobs.
Jeff Seedman, a public relations specialist representing Squarespace, confirmed the layoffs to TechCrunch. The Verge initially reported the layoffs.
“Squarespace is restructuring its organization and reducing its workforce by approximately 19% to approximately 300 people worldwide,” Seedman said. “This change is designed to simplify the way we operate, clarify our priorities, and allow us to quickly move Squarespace toward its next phase of growth.”
Website building has changed significantly over the past few years as a result of the generative AI boom. Requiring only a simple prompt from the user to launch a functional front-end design, the “vibecoding” website builder has revolutionized the industry, allowing users to create sites with significantly less effort.
These types of sites are becoming a central part of the website building business. Last year, rival web host Wix acquired Base44 for $80 million. Similar services like Lovable are attracting significant investor interest. Lovable raised a $400 million Series C round in August, valuing the company at $13.3 billion. Google also recently launched Stitch, a feature that allows users to quickly generate user interface designs.
Squarespace has also launched a major AI push. In 2024, the company launched an AI tool called Blueprint. The company also recently announced Forma, its upcoming AI-native platform that waitlist users can join.
Squarespace was founded in 2004 and went public in 2021 at a valuation of $10 billion. However, in the years that followed, the company struggled to garner enthusiastic market interest. Squarespace ultimately decided to go private again in 2024 through a $7 billion private equity deal.
A previous version of this report incorrectly stated that Squarespace had not yet launched an AI tool. Story has been updated.
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