Squarespace, the company that provides tools for customers to build and host websites, is reducing its global headcount by approximately 19%, a reduction that represents around 300 employees. The layoffs were confirmed to TechCrunch by public relations representative Jeff Seedman; the initial report appeared on The Verge.
"Squarespace is restructuring its organization and reducing its global workforce by approximately 19%, representing around 300 employees," Seedman said. He added that the changes aim to simplify operations, sharpen priorities, and allow the company to move faster as it positions itself for the next phase of growth.
Why now?
The market for building websites has been reshaped by the rapid rise of generative artificial intelligence. "Vibe-coding" website builders, which can produce functional front-end designs from simple user prompts, have changed industry expectations and reduced the effort required to create sites.
These developments have become increasingly central to the website-building business. For example, rival web host Wix acquired Base44 last year for $80 million. Comparable offerings have attracted significant investor interest: Lovable raised a $400 million Series C in August that valued the company at $13.3 billion. Google also recently launched Stitch, a feature that enables quick generation of user-interface designs.
Squarespace's AI efforts
Squarespace has been investing in AI as well. In 2024 the company launched an AI tool called Blueprint. It has also announced Forma, an AI-native platform that is currently accepting waitlist sign-ups.
Company background
Squarespace was founded in 2004 and went public in 2021 at an approximately $10 billion valuation. The company struggled to sustain strong public market interest in the following years and ultimately returned to private ownership in 2024 through a $7 billion private equity deal.
Note
An earlier version of this report incorrectly stated that Squarespace had not launched AI tools; the article was updated to correct that error.
