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Web host Squarespace lays off 19% of its employees

SoftwareNovember 3, 20261 min read

Squarespace, a company that helps people build and host websites, is cutting about one-fifth of its workforce. About 300 employees will lose their jobs.

What happened

Squarespace is laying off about 19% of its global staff. A company spokesperson confirmed the cuts. The company says the goal is to simplify how it works, focus on its top priorities, and move faster as it grows.

Key numbers

About 19% of the workforce is affected.
About 300 employees will lose their jobs.
Squarespace was founded in 2004.
It went public in 2021 at a $10 billion value.
A $7 billion private equity deal took it private again in 2024.

Why the industry is changing

Making websites has changed a lot because of generative AI, which is AI that can create new text, images, and designs. Some new tools called vibe-coding builders let users make a working website with just a few simple instructions. Rivals are growing fast. Wix bought Base44 for $80 million, and Lovable raised $400 million at a $13.3 billion value. Squarespace is also pushing into AI with its Blueprint tool and its upcoming Forma platform.

Why it matters

This shows how hard it is for older website companies to keep up with fast AI tools. Squarespace is trying to change its business to compete. For the people who lose their jobs, this is a big and hard change.

What to watch

Whether Forma launches and attracts users.
How well Squarespace's AI tools compete with new rivals like Lovable.
Whether the company grows faster after the job cuts.

Glossary

Squarespace: A company that lets people build and host their own websites.
Wix: A website-building company and a rival of Squarespace.
Base44: A vibe-coding website builder that Wix bought for $80 million.
Lovable: A fast-growing AI tool that helps people make websites with simple prompts.
Blueprint: An AI tool that Squarespace launched in 2024.
Forma: An upcoming AI-based platform from Squarespace. People can join a waitlist to try it.

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Squarespace is laying off 19 percent of employees

Website-building platform Squarespace is cutting about 300 of its 1,800 employees, or 19 percent, as part of an effort to "simplify" its operations, according to a statement from spokesperson Jeff Seedman. Affected employees will receive 16 weeks of base pay and healthcare benefits through May 2027. The layoffs come a little over two years after Squarespace launched its Blueprint AI tool, around the time private equity firm Permira closed its acquisition of the company.