Israel-based web development firm Wix has announced it will cut approximately 20% of its workforce, which translates to over 1,000 jobs. CEO Avishai Abrahami shared this decision in a post on X early Thursday. He attributed the layoffs to rapid advancements in artificial intelligence (AI) and challenges related to currency exchange rates.
Abrahami explained that the company is undergoing a significant transformation. He believes this change is more than just adopting new tools; it involves restructuring how businesses are built, managed, and operate. To streamline decision-making, Wix will reduce its layers of leadership.
Wix is also feeling the effects of a strong Israeli shekel against the US dollar. This strengthening has created “structural pressure” on Wix’s ability to continue operating at its current size. When approached for more information, Wix directed inquiries back to Abrahami’s post.
The announcement aligns Wix with a growing trend among technology companies that are reducing staff. Many leaders in the sector cite AI for its ability to automate various tasks, which leads to job cuts. For instance, in February, Block reduced its workforce by nearly half, eliminating about 4,000 jobs, while Cisco laid off 5% of its staff this month.
At the end of the first quarter, Wix had 5,277 employees, based on a shareholder update from May. Following the news, Wix’s shares remained stable. The company will need to manage this transition carefully and assess how these changes impact its future growth and operations.
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