Squarespace Lays Off 19% of Staff as AI Site Builders Rise

Is AI changing the website business faster than incumbents can adapt? Squarespace is cutting about 19% of its global workforce, around 300 people, a spokesperson confirmed after The Verge first reported the move. TechCrunch ties the reductions to the rise of AI vibe-coding site builders that can generate pages from simple prompts.

The article notes that Wix bought Base44 for $80 million and that Lovable raised a $400 million Series C at a $13.3 billion valuation. Squarespace launched its own AI tool, Blueprint, in 2024 and has announced an AI-native platform called Forma, as it tries to compete with newer rivals. Rivals are moving fast.

Squarespace was taken private in a $7 billion deal in 2024, so it faces less public market pressure. Even so, the layoffs show how quickly AI tools are reshaping web design and hosting, putting pressure on established platforms to reinvent their products while smaller start-ups attract huge investment. Staff face uncertainty.