Wix, the Israel-based website building giant, is cutting around 20% of its workforce, approximately 1,000 employees, as part of a restructuring plan aimed at adapting to the fast evolution of artificial intelligence and currency headwinds. As reported by Business Insider, in a message to staff shared on social media platform X, Wix CEO Avishai Abrahami called the decision one of the hardest he has made but insisted it was necessary.
CEO's Message to Employees
Abrahami wrote, "Today is a sad day for me. We have made a very hard decision. We are reducing the Wix team size by roughly 20%. It is one of the hardest decisions I have had to make, but I am confident it is the right one." He thanked employees for their contributions and explained that the layoffs were driven by two factors: the strengthening Israeli shekel against the U.S. dollar, which has created structural cost pressures, and the rapid evolution of AI capabilities, requiring Wix to become a "faster, leaner, and flatter organization."
AI and Currency Pressures
With this round of layoffs, Wix joins companies like Snap, Block, and Atlassian in citing AI as a reason for workforce reductions this year. Abrahami said AI is "rewiring how companies are built" and noted that Wix has introduced new roles such as Xengineer and Creators, designed around AI-native ways of working. He emphasized that the strengthening shekel against the dollar creates structural pressure on costs, as most teams are Israel-based and costs are shekel-denominated while revenue is dollar-denominated.
Support for Affected Employees
Affected employees will receive separation packages and direct communication from management. Abrahami urged remaining staff to treat departing colleagues with respect: "How we say goodbye says as much about who we are, as anything we've ever built together." He also stated that the company is moving to a structure with fewer levels between leadership and junior team members, leading to faster decisions and clearer ownership.
The CEO concluded by reaffirming the company's commitment to users and shareholders, stating that the decision was necessary to ensure Wix remains healthy, durable, and positioned to lead in the new era. The TOI Tech Desk, a dedicated team of journalists, brings this news with accuracy and authenticity.
