Wix Cuts 20% of Workforce Amid Currency Restructuring and AI Competition
Wix is cutting roughly 1,000 jobs, about 20% of its workforce, in the largest layoff in company history. CEO Avishai Abrahami cited the strengthening Israeli shekel and the need to rebuild the company around AI-native roles. This decision follows a significant currency mismatch that has increased operational costs for the website builder.
Key Takeaways:
- Currency Impact: The Israeli shekel's strength against the US dollar has made Wix's Israeli workforce more expensive in dollar terms, creating a structural cost increase.
- AI Focus: Abrahami framed the restructuring as a shift to a flatter organizational structure with fewer management layers and new roles designed around AI-native workflows.
- Scale of Cuts: Affected employees will be contacted individually and receive personalized separation packages. Headcount will drop from 5,277 at the end of March 2026 to roughly 4,200.
Background:
- Revenue and Costs: Wix earns most of its revenue in dollars but pays its workforce in shekels, leading to a currency mismatch.
- Industry Trends: The entire Israeli tech sector is affected by the stronger shekel, making engineering salaries rise sharply.
- Future Direction: Wix aims to rebuild around AI-native roles and streamline decision-making processes with a flatter organizational structure.