Wix to Cut Roughly 1,000 Jobs in AI Restructuring

Wix is laying off roughly 1,000 employees, about 20% of its workforce, as it restructures around AI-native roles while facing higher shekel-denominated costs.

Workforce reduction

Wix is cutting roughly 1,000 jobs, representing about 20% of its workforce, in what one report described as the largest layoff in the company’s history.

The website-building company employed 5,277 people at the end of March 2026, according to The Next Web, and the reduction is expected to leave headcount at roughly 4,200. More than 60% of its workforce was based in Israel.

A separate report said the organisational realignment will scale back or discontinue certain initiatives, products and subsidiaries while streamlining operations. Wix expects the changes to reduce bookings by approximately $50 million and revenue by around $25 million in 2026, that report said.

AI-focused operating model

Chief executive and co-founder Avishai Abrahami attributed the restructuring partly to a shift toward AI-native roles and workflows. He outlined a flatter organisational structure with fewer management layers, intended to support faster decisions and clearer ownership.

Wix has introduced roles including xEngineer, described as a design-first engineering position using AI-native workflows, and Creators, a category for employees who work primarily with AI tools.

The reduction is not attributed solely to AI. Abrahami also cited the strengthening Israeli shekel, which increases costs for a company that earns most of its revenue in US dollars while paying much of its workforce in shekels.

The Next Web reported that the shekel rose roughly 14% in 2025 and a further 7% in the first five months of 2026. It also reported that Israeli engineering salaries had risen 15% to 20% in dollar terms within a few months.

Financial and competitive pressure

The layoffs follow a weak period for Wix shares. The company’s stock fell 27% on 13 May after first-quarter results missed Wall Street expectations, according to The Next Web. Revenue rose 14% year on year to $541 million, while Wix reported a net loss of $57.5 million after several profitable quarters.

Adjusted earnings were $0.68 per share, compared with a $1.22 consensus estimate. Operating expenses as a percentage of revenue rose from 21% in Q1 2025 to 35% in Q1 2026.

The report said Wix shares had lost more than 50% of their value since the start of the year, leaving its market capitalisation at roughly $2 billion, compared with nearly $20 billion at its 2021 peak.

Wix also acknowledged competitive pressure from AI tools used by professional developer customers and gaps in its Wix Harmony platform that delayed product updates. The company acquired Base44, a vibe-coding platform, for $80 million earlier this year.

Affected staff will receive separation packages and will be contacted individually, according to The Next Web.

Wix to Cut Roughly 1,000 Jobs in AI and Currency Restructuring

Workforce reduction

AI-focused operating model

Financial and competitive pressure

Sources