Squarespace, the website-building company, is cutting about 19% of its global workforce. A company representative confirmed the layoffs to TechCrunch on Monday, November 2, after The Verge first reported them. The Next Web also covered the cuts.
The numbers. The cuts affect around 300 people, or about 19% of the workforce, according to TechCrunch. Other reports put the company at about 1,800 employees before the layoffs. Squarespace said it is reducing its global workforce by approximately 19% as part of a restructuring meant to simplify operations, sharpen priorities and help it move faster.
Where the cuts fall. Other coverage, citing a companywide memo reported by Business Insider and a statement to Investing.com, says most reductions hit product and engineering. The memo points to smaller teams and a simplified structure. Those affected will receive at least 16 weeks of base pay, with extra weeks based on tenure, and benefits that run until May 2027, according to the same reports. These details come from early coverage and may change.
The AI backdrop. TechCrunch links the move to disruption from generative AI, and in particular to so-called vibe-coding website builders that create sites from simple prompts. It notes that Wix bought Base44 for $80 million in 2025, that Lovable raised a $400 million Series C in August 2026 at a $13.3 billion valuation, and that Google launched Stitch, a user-interface design tool. Other coverage says neither the company nor The Verge directly tied the layoffs to AI, so the link is the reporters’ context and not an official reason.
Squarespace’s own AI work. The company launched an AI tool called Blueprint in 2024 and has announced Forma, an upcoming AI-native platform that has a waitlist. TechCrunch also notes that the company has had a rocky time since going public in 2021 at a $10 billion valuation, and that it went private again in 2024 through a private equity deal. Reports differ on that deal’s value: TechCrunch’s web address mentions $6.6 billion, while another report gives about $7.2 billion.
Why it matters. Website builders were once a stable, subscription-driven business, and AI tools that turn a prompt into a working site are changing what customers expect. A company that sells templates and hosting has to show why it is better than a free assistant. For small businesses in the US and UK that rely on these platforms, the layoffs are not a sign of any change to current services, and the reports do not say that any are affected.
What to watch. Look for the launch date and pricing of Forma, any further cuts, and how rivals such as Wix respond. Customers who rely on Squarespace should watch for notices about product changes.
Sources: TechCrunch and The Next Web, with details attributed to The Verge and Business Insider. Figures are as reported by those outlets.
Web browser displaying a website homepage (representative image), Wikimedia Commons, public domain
