Artificial intelligence is changing how people build websites, allowing businesses and individuals to create online storefronts, portfolios and other digital services with little technical expertise. But what happens to companies whose business has long been built around simplifying website creation? These advances are introducing new challenges. Also read: Amazon cuts more jobs as CEO touts record margins, retail gains If you’ve ever applied for a job that required an online portfolio, you’ve probably heard of or used Squarespace, one of the better-known website-building platforms. The company is reducing its global workforce by approximately 19%, affecting around 300 employees. The layoffs represent one of the latest workforce reductions in the technology sector, as companies invest in new tools and capabilities while simplifying operations. Squarespace layoffs affect product and engineering employees Squarespace confirmed the cuts in a statement to The Verge, saying the restructuring is intended to simplify its operations and sharpen its priorities. Most of the reductions will affect the company’s product and engineering teams, according to an internal memo obtained by Business Insider. More Layoffs: Disney cuts 300 jobs and major overhaul puts hundreds more at risk Microsoft cuts hundreds more jobs as restructuring deepens Oracle layoffs top 2,500 workers as AI spending surges CEO Anthony Casalena said the company needed to adapt its operating structure as the technology underlying its business evolves. That includes smaller teams, more employees who combine leadership with hands-on responsibilities, and a simplified organizational structure. He maintained that the restructuring was not designed to achieve a specific financial target. Affected employees will receive at least 16 weeks of base salary, with additional severance based on tenure. The company will also provide healthcare benefits through May 2027, career coaching, resume assistance and additional support for employees on work visas. Departing workers will be permitted to keep their company laptops. The cuts come roughly two years after private-equity firm Permira completed its acquisition of Squarespace in October 2024. The transaction, valued at approximately $7.2 billion, took Squarespace private after several years as a publicly traded company. Squarespace plans to lay off 300 employees. grinvalds / Getty Images Squarespace expands its AI offerings amid restructuring The restructuring comes as Squarespace moves beyond its traditional business of helping individuals and companies build websites. Its latest strategy increasingly centers on providing tools to manage more aspects of running a business, from customer communications to online bookings to automated workflows. In 2024, the company introduced Blueprint AI, which helps users design websites and generate content, including product descriptions and blog posts. On November 2, Squarespace took another step by announcing Forma, an upcoming AI-powered platform designed to bring websites, applications and digital agents together. The idea is to let users build more than a website through a conversational interface. For example, rather than simply creating a website for a small business, users could eventually develop an application that handles customer bookings, collects information from clients and uses an AI agent to respond to inquiries. Forma will also recommend the types of applications a business might need based on its operations, according to Squarespace. The platform remains in development, with a beta version planned and Squarespace Circle partners expected to receive early access. The company also announced additional tools, including AI-assisted website sections, features that help businesses track their visibility in AI-powered search, and integrations connecting Squarespace with other AI applications. Some features are already available, while others are still being developed. The expansion reflects a broader shift in Squarespace’s business model, from helping customers establish an online presence to providing software that can support their everyday business operations. Internally, CEO Anthony Casalena is also moving toward smaller teams, fewer organizational layers, and more hands-on managers as the company adapts to technological changes. However, Squarespace told Investing.com that it would not characterize the layoffs as linked to increased investment in AI infrastructure. Technology layoffs continue in 2026 Squarespace’s decision follows another difficult year for workers across the technology industry. Technology companies announced 165,925 job cuts during the first nine months of 2026, a 54% increase from the corresponding period in 2025, according to outplacement firm Challenger, Gray & Christmas. The sector accounted for approximately 29% of all announced job cuts during that period, more than any other industry. The pace of reductions also accelerated in September, when technology companies announced 10,799 cuts, up 77% from August. The trend has affected some of the industry’s biggest employers. As TheStreet previously reported, Microsoft disclosed 277 job cuts in Washington in September, affecting employees in software engineering, product management, data science and other roles. Meanwhile, Oracle’s layoffs surpassed 2,500 across documented U.S. WARN filings this year, including hundreds of additional positions eliminated as the company expanded its AI infrastructure spending. Artificial intelligence is increasingly being cited in workforce-reduction announcements, although it is not the only reason companies are eliminating jobs. According to Challenger, employers across industries cited AI in 120,136 announced job cuts through September, representing approximately 21% of the total. Restructuring, business closures and weaker demand have also contributed to layoffs. For technology workers, the reductions are reaching the same technical departments responsible for developing and maintaining the products companies are investing in. And as Squarespace’s latest cuts demonstrate, even product and engineering teams are being reorganized as technology companies rethink how they build their next generation of services. Related: Amazon cuts more jobs as CEO touts record margins, retail gains
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