Wix CEO cites 'fast evolution of AI capabilities' in announcement of 20% workforce cut

Date:
Fri, 29 May 2026 17:05:00 +0000

Description:
Wix says Dollar-Shekel currency issues and rapid AI developments are behind its decision to cut 20% of its headcount.

FULL STORY ======================================================================Copy link Facebook X Whatsapp Reddit Pinterest Flipboard Threads Email Share this article 0 Join the conversation Follow us Add us as a preferred source on Google Newsletter Subscribe to our newsletter Wix has confirmed plans to lay off around one in five workers Despite job cuts, the company will continue to hire new roles for an AI-first future Share prices down following news, also down following disappointing Q1 EPS miss Wix CEO Avishai Abrahami confirmed
in an X post that the company will be laying off around 20% of its workers as a result of an ongoing restructuring initiative set to affect all
departments.

Among the reasons cited for the mass layoffs were currency and exchange rate pressures, with many of the company's workers and a large portion of its operating costs housed in Israel, under the Israeli Shekel. Conversely, a lot of company revenue is Dollar-dominated, which has created a significant gap
in currency sustainability. Latest Videos From You may like Zuckerberg blames Meta layoffs on AI costs - with more job cuts possibly to come Freshworks and Coinbase announces major layoffs - AI blamed 'We are making clear, strategic investments': Cisco cuts 4,000 jobs, even as AI orders surge AI, streamlining and missed earnings "In the past few quarters the exchange rate between the Shekel and the US dollar has shifted significantly," he said. "This creates a structural pressure on our ability to operate at our current scale."

Additionally, the CEO unsurprisingly blamed artificial intelligence for the shakeup. "We have witnessed the most significant shift in how companies are built since the invention of modern programming languages in the 1970s," the leader stated.

Abrahami explained that companies like Wix must 'rewire' how they operate, leading to major job cuts. But the leader didn't rule out future hires,
noting the creation of new roles like Xengineer and Creators already.

He also become one of a growing number of business leaders to cite the need
to flatten organizational hierarchy to streamline efficiency. He hopes a leaner will will enable faster decisions to be more agile to shifts in tech capabilities and customer trends. Are you a pro? Subscribe to our newsletter Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed! Contact me with news
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Though the finer details are under wraps, affected workers are being promised "personally curated separation packages."

Company shares are down around 1.5% following the announcement, and worse still, down around 47.9% this year to date following a major first-quarter earnings miss where adjusted EPS stood at $0.68 compared with Wall Street forecasts of $1.22. Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews, and opinion in your feeds.



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Link to news story: https://www.techradar.com/pro/wix-ceo-cites-fast-evolution-of-ai-capabilities- in-announcement-of-20-percent-workforce-cut


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