Osegi
Startups·1 min read

Squarespace to Cut About 19% of Staff, Roughly 300 Jobs

Squarespace will lay off about 19% of its global workforce, around 300 employees, as it restructures to move faster while AI site builders reshape the market.

Squarespace logo displayed on a laptop screen showing a website builder interface.
Image: Webrazzi

Website building and hosting platform Squarespace has announced it will lay off about 19% of its employees worldwide. The decision affects roughly 300 people.

The company says the restructuring is meant to simplify operations, sharpen priorities and let it move faster. According to Squarespace, the step is part of preparing for its next phase of growth.

Generative AI reshapes website building

The cuts come as the website creation industry goes through a major shift driven by generative AI. So-called vibe coding tools let users produce functional websites using only text prompts, making site development far easier.

Competitors are moving quickly. Wix bought the vibe coding platform Base44 last year for $80 million. Lovable reached a $13.3 billion valuation in August with a $400 million Series C round. Google, meanwhile, has launched Stitch, a tool for quickly generating user interface designs.

Squarespace's own AI push

Squarespace is also stepping up its AI work. It introduced the AI-powered Blueprint tool in 2024 and recently announced Forma, a new AI-focused platform. Interested users can apply to join its waitlist.

Founded in 2004, Squarespace went public in 2021 at a valuation of $10 billion. It struggled to hold investor interest as a listed company, and in 2024 it returned to private ownership through a $7 billion private equity deal led by Permira.

For customers, the layoffs signal that the company is reallocating resources toward AI products as established website builders face pressure from a new generation of prompt-driven tools.

Apps worth a look

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Tags:squarespacelayoffswebsite buildergenerative aivibe codingpermira

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