Wix Cuts 1,000 Jobs Citing AI Productivity Gains and Currency Pressures

Wix announced on May 28, 2026, that it is cutting approximately 1,000 employees, representing about 20 percent of its 5,277-person workforce. CEO Avishai Abrahami called it the largest single round of layoffs in the company's history.

Abrahami cited two primary reasons for the cuts. First, the rapid evolution of AI capabilities, which he described as the most significant shift in company building since the 1970s. Second, currency pressures: a large portion of Wix's workforce is based in Israel, where salaries are paid in shekels, while the company's revenue is primarily in U.S. dollars. The shekel strengthened significantly against the dollar in 2025 and early 2026, creating structural cost pressures.

The company is restructuring into a "leaner and flatter" organization with fewer management layers. Wix is also creating new AI-native roles, including "Xengineers," described as design-first engineers, and "Creators," to align with new AI-driven workflows.

Wix shares had fallen more than 50 percent since the start of 2026, with the company's market capitalization dropping to about $2 billion from a 2021 peak of nearly $20 billion. The company reported a net loss of $57.5 million in the first quarter of 2026, missing analyst expectations.

The layoffs place Wix within a broader wave of 2026 tech sector job cuts. Industry trackers have counted more than 95,000 tech jobs eliminated across hundreds of companies this year, with many firms citing AI-driven automation as a primary reason.

Wix faces increased competition from new AI-powered website-building platforms that use "vibe-coding," a term for AI tools that generate code from natural language descriptions. The company said it is investing in AI to remain competitive in that environment.