Wix announced layoffs affecting roughly 20% of its workforce, about 1,000 employees. The company attributed the decision to the fast evolution of AI and the resulting shift in how companies are built, managed, and operated. It also cited a weak U.S. dollar that worsens the exchange rate between the Israeli shekel and the dollar. Wix said most teams are Israel-based, making a large share of costs shekel-denominated, while revenue is largely dollar-denominated. The company stated this creates structural pressure on operating at its current scale. Wix shares were up slightly in midday trading, and the stock has declined substantially since early 2026.
"We have witnessed the most significant shift in how companies are built since the invention of modern programming languages in the 1970s. This is not just about adopting new tools - it is about rewiring how companies are built, how they think, how they manage and how they operate. Companies that embrace this change will not only build faster; they will build things the previous generation literally could not have imagined."
"As the majority of our teams are Israel-based, a very meaningful portion of our costs are shekel-denominated, while our revenue is largely dollar-denominated. This creates a structural pressure on our ability to operate at our current scale. It is a reality that directly shapes what is sustainable for our company."
"Wix, a website builder, said Thursday that it's laying off roughly 20% of its workforce, in a post from CEO Avishai Abrahami on X and LinkedIn. (That's about 1,000 people, according to CNBC, which reported that Wix had 5,277 employees as of May.)"
"Israel-based Wix joins a growing list of companies announcing layoffs citing "the fast evolution" of AI. (That list includes Meta, Cisco, Groupon, and Intuit, in just the last few weeks.) It also said a weak dollar, creating a poor exchange rate with the Israeli shekel, was to blame."
#ai-transformation #workforce-layoffs #currency-exchange-risk #cost-structure #website-building-saas
Read at Fast Company
Unable to calculate read time
Collection
[
|
...
]