- Web development company Wix will fire around 20% of its workforce.
- CEO Avishai Abrahami cited the “fast evolution of AI capabilities” and currency exchange rate concerns as reasons.
- Wix had 5,277 employees at the end of Marc
Web development company Wix will lay off around 20% of its workforce. Avishai Abrahami, the Israel-based firm's CEO, made the announcement in an X post on Thursday, citing the “fast evolution of AI capabilities” as a reason behind the move.
Abrahami explained that shifting currency exchange rates around the US dollar and Israeli shekel were also a big reason behind the layoffs.
Calling the firings the “one of the hardest decisions” he has ever made, Abrahami thanked his friends and colleagues for their commitment to the company.
The Wix boss explained that the strengthening of the Israeli shekel against the US dollar created a "structural pressure” on the company's ability to operate at their current scale, since their costs are shekel-denominated but their revenue is largely in dollars.
Not just that, he also cited the need for creating a “faster, leaner, and flatter organization” as AI capabilities evolve. Abrahami said the company would move towards a structure with fewer levels of leadership.
“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,” the Wix boss said.
Abrahami also gave the example of new roles like Xengineer in his company, which were designed around AI-native ways of working.
Sharing here the message I just sent to the whole Wix team:
— Avishai Abrahami (@Avishai_ab) May 28, 2026
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, and I will…
Wix is not the only company to announce layoffs this month. American tech giant Meta fired 8,000 people and transferred another 7,000 to AI-native teams. The layoffs were made by the company to offset its investments in artificial intelligence.
Wix joins Snap, Atlassian and Block among the organisations citing AI as a cause for layoffs, Business Insider reported.
Wix is also one of the companies that may be threatened by the "SaaSpocalypse," a term that denotes how AI can replicate tools and products sold by software firms. The web developer's share price has fallen 23% since the start of the year.
Wix has made recent investments in AI-related tools, Times of Israel reported. The platform bought startup Base44, an Israeli AI-based app creator startup as well as local startup Hour One to improve its web creator and content offerings.
Established in 2006, Wix is one of Israel's leading tech firms. The NASDAQ-listed company has a market cap of almost $2.2 billion. At the end of March, the company had employed 5,277 people, over 60% of whom were based in Israel.
