Squarespace Cuts 19% of Workforce as AI Reshapes Website Building
Squarespace, the web company that helps customers build and host their own websites, is laying off approximately one-fifth of its workforce—a move that will affect hundreds of jobs.
Jeff Seedman, a public relations specialist representing Squarespace, confirmed the layoffs to TechCrunch. The Verge initially reported the news.
"Squarespace is restructuring its organization and reducing its global workforce by approximately 19%, representing around 300 employees," Seedman said. "The changes are intended to simplify how we operate, sharpen our priorities and enable the company to move faster as we position Squarespace for its next phase of growth."
Generative AI Is Rewriting the Website Building Playbook
Website building has changed dramatically over the past few years amid the generative AI boom. So-called "vibe-coding" website builders—which require only simple prompts from users to spin up functional frontend designs—have largely upended the industry, making it possible to create sites with significantly less effort.
These tools have become an increasingly central part of the website building business. In 2025, rival web host Wix acquired Base44—a six-month-old, solo-owned vibe-coding startup—for $80 million in cash. Similar offerings, such as Lovable, have attracted significant investor interest: in August 2026, Lovable confirmed a $400 million Series C round at a $13.3 billion valuation. Google also recently launched Stitch, a feature that lets users rapidly generate user interface designs.
Squarespace's AI Answer: Forma
Squarespace has yet to launch a comparable vibe-coding utility, though one is scheduled to arrive soon. The company recently announced Forma, an upcoming AI-native platform that currently has a waitlist.
From Public Markets to Private Equity
Squarespace was founded in 2004 and went public in 2021 at a $10 billion valuation. However, the company struggled in the years that followed to generate enthusiastic public market interest. In 2024, Squarespace ultimately decided to go private again through a $7 billion private equity deal led by Permira.
This article has been edited for clarity and updated with 2026 industry context.
via TechCrunch