Website-building company Squarespace is cutting around 300 jobs, affecting 19% of its global workforce, as it restructures operations amid growing competition from artificial intelligence (AI)-powered tools.
According to Traders Union, citing reports by The Verge and TechCrunch, most of the job cuts will affect Squarespace's product and engineering teams.
The company, which has around 1,800 employees, said the restructuring aims to simplify operations, set clearer priorities and speed up decision-making.
Squarespace spokesperson Jeff Seedman said, “Simplify how we operate, sharpen our priorities and enable the company to move faster as we position Squarespace for its next phase of growth."
The company also rejected claims that the layoffs were linked to plans to increase spending on AI infrastructure.
"We would not characterise the restructuring as being linked to plans to increase investment in AI infrastructure," the company said.
Affected employees will receive at least 16 weeks of base pay and continued healthcare coverage through May 2027.
Product and engineering teams face most job cuts
The latest restructuring will primarily affect employees working across product and engineering functions, according to the company.
Squarespace said the workforce reduction was part of a broader organisational overhaul rather than an isolated cost-cutting exercise.
The company aims to streamline its operations and improve how teams work as competition in the website-building sector increases.
Squarespace was taken private by private equity firm Permira in a deal valued at around $7.2 billion, which closed in October 2024. The company had gone public in 2021 at a valuation of approximately $10 billion.
AI tools increase competition in website building
The job cuts come as AI-powered platforms change how users design and develop websites.
Generative AI tools now allow users to create website layouts, generate content and build functional designs through simple text prompts.
This has increased competition for traditional website builders and hosting providers.
Several companies are expanding their presence in the market. Wix acquired AI website-building startup Base44 for $80 million in 2025, while Lovable raised $400 million in a Series C funding round in August 2026, reaching a reported valuation of $13.3 billion.
Google has also entered the space with Stitch, a tool that helps users generate user interface designs.
These developments have increased pressure on established website-building companies to update their products and compete with AI-powered platforms.
Squarespace expands its AI offerings
Squarespace has also been investing in AI-powered website creation tools.
The company launched Blueprint AI in 2024, allowing users to build websites and generate content, including copy and blog posts.
It recently announced Forma, an upcoming AI-native platform aimed at expanding its website creation capabilities.
Founded in 2004, Squarespace went public in 2021 before returning to private ownership through Permira's acquisition in 2024.
The latest layoffs mark another step in the company's efforts to reshape its operations as AI adoption changes the website development market.