Squarespace cuts 19% staff as tech layoffs turn to lower‑pay

Squarespace slashes 19% of its workforce

Squarespace announced a 19% reduction in its headcount on Monday. The website‑builder framed the cuts as part of a broader organizational restructuring. The move follows a wave of tech layoffs that began in early 2023 and has left many engineers and designers staring at termination notices. The company did not disclose the exact number of employees affected, but the percentage translates to several hundred staff members given its roughly 2,000‑person workforce. No severance details were provided, and Squarespace declined to comment on future hiring plans.

Reposting jobs at lower salaries gains viral attention

A TikTok video by career coach Mandy, @careercoachmandy, has amassed more than 455,000 views. In the clip she describes a practice that has become “all too common” among tech firms: after a layoff, the same position reappears on job boards with a substantially lower salary. Mandy illustrates the tactic with a hypothetical senior engineer earning $180,000 who is let go, only to see the role reposted at $140,000 – a $40,000 cut. She notes that “you could just repost this position for like $140,000, you know, and we just save $40,000.” The video sparked a flood of comments from workers who say they have experienced the exact scenario.

The “Great Reboot” and salary base resetting

Business Insider reported that the practice of posting lower‑pay openings dates back to February 2023. Recruiters coined the phrase “Great Reboot” to describe a systematic recalibration of compensation levels after mass layoffs. Companies use the tactic to “reset the salary base as much lower,” according to Mandy’s commentary. One commenter, a recruiter, confirmed the trend: “This is what’s happening. Without a doubt.” Another former employee said, “I was making 130k. They let us go and reposted the job to 85k.” The pattern appears across multiple firms and seniority levels, suggesting a coordinated shift rather than isolated incidents. The financial logic is straightforward. By cutting the advertised salary, firms reduce payroll obligations and preserve cash in a tightening market. The practice also pressures remaining staff to accept lower raises, reinforcing a new, lower compensation ceiling.

Consequences for talent and corporate reputation

Workers forced to choose between a lower‑pay rehire and a job search face a stark dilemma. Mandy summed it up: “If any of us were in that position where you lose a job and then they ask you to come back, it’s a tough market. Most of us would be like, ‘OK, I’ll come back.’ Then they pay you 20% less.” The practice erodes trust and fuels resentment, potentially increasing turnover and damaging employer brands. From a hiring perspective, the lower salary signals may deter top talent who can command market rates elsewhere. Start‑ups and smaller firms that rely on reputation to attract engineers could lose a competitive edge. Conversely, firms that aggressively reset pay may fill roles quickly, but risk building a workforce that feels undervalued.

What to watch

Track whether Squarespace announces any new hiring rounds and, if so, whether the posted salaries differ from pre‑layoff levels. Monitor additional TikTok or LinkedIn posts that document similar rehire‑for‑less cases, especially at companies that have recently announced layoffs. Finally, watch for any legal challenges or union actions that target salary‑reset practices, as they could force a policy reversal or regulatory scrutiny.