What happened Shares of Fiverr International (NYSE: FVRR) are tumbling 13.3% this week compared with where they closed last Friday, according to data from S&P Global Market Intelligence. The drop followed the freelancing platform's announcement that it was laying off 8% of its workforce. Fiverr had been a promising tech IPO that transformed into a pandemic-era darling, only to see it catch the vapors in a reopened economy. The stock is down 72% in 2022 and has lost 88% of its value from the all-time high it hit last year. So what The economy has not been kind to Fiverr as people returned to offices. During the early part of the pandemic, many people took to the gig economy to make a living, and the company, which matches freelance creatives with customers, surged in popularity. While it started out with just $5 jobs on the platform (hence its name), it has evolved into a site offering opportunities at every price point. While revenue continues to grow, up 27% in the first quarter, it is no longer at the rates at which it had been expanding and losses continue to widen. It's likely for that reason the company is slashing its workforce. According to Israeli site Globes, which first reported the cuts, Fiverr said, "During recent months we decided to focus on our core business and improve the expenditure structure of the company in order to strengthen and ensure continued revenue growth and profitability, while adjusting to macroeconomic changes." Now what While a struggling economy might force more creatives to Fiverr, customers will also be more careful about their discretionary spending. And advertising is already pulling back, hitting companies like Snap and Alphabet's YouTube. Fiverr International is scheduled to report second-quarter earnings next week, which could be brutal if the tech stock is already culling its workforce now. 10 stocks we like better than Fiverr InternationalWhen our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Fiverr International wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of July 27, 2022 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Rich Duprey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet (A shares), Alphabet (C shares), and Fiverr International. The Motley Fool has a disclosure policy.Source