Squarespace cuts about 19% of workforce in restructuring

Squarespace, the company that helps customers build and host their own websites, is laying off about one-fifth of its workforce, affecting around 300 employees. Jeff Seedman, a public relations specialist representing Squarespace, confirmed the layoffs to TechCrunch, and The Verge initially reported them. The company said the restructuring is meant to simplify operations, sharpen priorities and help it move faster toward its next phase of growth.

Restructuring details

Seedman said Squarespace is reducing its global workforce by approximately 19%, representing around 300 employees. He said the changes are intended to simplify how the company operates, sharpen its priorities and enable it to move faster as it positions Squarespace for its next phase of growth.

AI reshapes website building

Website building has changed immensely over the last few years because of the generative AI boom. Vibe-coding website builders require only simple prompts from users to spin up functional front-end designs, and have largely upended the industry by making it possible to create sites with significantly less effort. These kinds of sites have become an increasingly central part of the website-building business.

Last year, web host rival Wix bought Base44 for $80 million. Similar offerings, like Lovable, have generated significant investor interest; Lovable raised a $400 million Series C round in August that valued the company at $13.3 billion. Google also recently launched Stitch, a feature that allows users to swiftly generate user-interface designs.

Squarespace's AI push and history

Squarespace has also begun a big push into AI. In 2024, the company launched an AI tool called Blueprint. It also recently announced Forma, an upcoming AI native platform whose waitlist users can join.

Squarespace was founded in 2004 and went public in 2021 at a $10 billion valuation. However, the company struggled in the ensuing years to generate enthusiastic public market interest. Squarespace ultimately decided to go private again by way of a $7 billion private equity deal in 2024.

Sources: TechCrunch