Overview
- CEO Avishai Abrahami announced the reductions on Thursday, May 28, 2026, saying the company will cut roughly 20% of its workforce, about 1,000 roles, and will notify affected employees directly.
- Abrahami told staff that a roughly 30% appreciation of the Israeli shekel against the U.S. dollar has raised real shekel-denominated payroll costs for Wix, which earns most revenue in dollars and has most employees in Israel.
- Wix framed the cuts as part of a shift to an AI-native operating model that includes new roles such as 'Xengineer' and 'Creators' and reduced demand for some development and design jobs because of internal AI automation.
- Management said the restructuring will flatten the organization, speed decision-making and materially reduce operating costs, but investors and analysts are watching whether Wix’s AI products can convert users into paying customers to restore growth.
- The layoffs follow weak Q1 results and a steep year-to-date share-price decline for Wix, and they signal wider industry trends of profitable tech firms pairing cost cuts with AI-led reorganizations.