Squarespace layoffs will eliminate approximately 300 jobs, representing 19% of the website builder’s global workforce. The company confirmed the restructuring Monday, Nov. 2, as it seeks to simplify operations and adjust its business priorities.
Spokesperson Jeff Seedman told The Verge that the changes would help Squarespace operate more efficiently and move faster. Affected employees will receive 16 weeks of base pay and healthcare benefits through May 2027.
Squarespace Layoffs Come Amid AI Website Builder Competition
Website development is changing as generative AI tools let users create functional designs with simple text prompts. These services are challenging traditional website builders by reducing the technical work required to launch websites.
Squarespace has already introduced AI features, including its Blueprint website builder, launched in 2024. The company is also developing Forma, an AI-native platform for creating websites, applications and agents.
In its guide to vibe coding, Squarespace explains how users can generate website code with AI and customize existing sites. Forma remains under development, and customers can join a waitlist.
Competition has intensified across the industry. Wix acquired AI application builder Base44 for $80 million in 2025, while Lovable has attracted substantial investment. Google has also expanded Stitch, its AI-powered interface design tool.
Other technology companies are entering the market. OpenAI recently introduced Codex website creation tools and partnerships involving Wix, Base44 and Lovable.
Squarespace Restructures After Going Private
Founded in 2004, Squarespace went public in 2021 but struggled to maintain investor enthusiasm. In 2024, the company announced plans to return to private ownership through a deal with investment firm Permira.
The acquisition closed in October 2024 at a final transaction value of about $ 7.2 billion. Founder Anthony Casalena remained CEO following the deal.
The latest workforce reduction comes as Squarespace develops new AI products under private ownership. The company has not publicly established AI automation as the direct cause of the job cuts.
