Wix Cuts 20% of Workforce as AI Shifts Development Landscape

Wix is laying off approximately 1,000 employees, representing 20% of its total workforce. CEO Avishai Abrahami justified the sweeping staff reduction by pointing to the rapid evolution of artificial intelligence and the financial strain caused by the strengthening of the Israeli shekel against the US dollar.

The company, which operates its primary base in Israel, currently employs just under 5,300 people. Abrahami stated that the move toward a leaner, flatter organizational structure is necessary to remain competitive in an industry being rewritten by AI. By removing management layers, the firm aims to accelerate decision-making and shorten the distance between leadership and product development.

Beyond internal restructuring, the company faces external economic pressures. Because most of its expenses are shekel-denominated while revenues are primarily in dollars, the recent currency volatility has created structural challenges for the business. Wix now joins other major tech firms, including Snap and Atlassian, that have cited the integration of AI as a catalyst for significant headcount reductions this year. The company is currently navigating a period of market uncertainty, with its share price having fallen 23% since the beginning of the year.