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Wix to Lay Off 20% of Workforce, Citing Shift to AI

By Any May 28, 2026
Website builder Wix announced it is laying off approximately 1,000 employees, representing about 20% of its workforce. In a memo to staff, CEO Avishai Abrahami cited the rapid advancement of AI and a strengthening Israeli shekel as the primary reasons for the restructuring, which aims to create a leaner organization.
Wix to Lay Off 20% of Workforce, Citing Shift to AI

Wix to Lay Off 20% of Workforce, Citing Shift to AI Wix’s largest-ever round of layoffs is reshaping the website-building company around artificial intelligence and currency realities, raising questions about how far tech firms will go to stay “lean” in an AI-first era.

Early 2026: Pressures Build

By early 2026, Wix’s business was under growing strain. The company’s share price had fallen sharply, with one report noting its stock was down more than 50% for the year as operating expenses climbed and AI-based competitors emerged. At the same time, the Israeli shekel strengthened roughly 14% in 2025 and another 7% in the first five months of 2026, making Israel-based payrolls significantly more expensive in dollar terms.

Because Wix earns most of its revenue in US dollars but pays much of its workforce in shekels, this “currency mismatch” created what analysts described as a structural cost squeeze on the company and the wider Israeli tech sector.

May 28, 2026: Layoffs Announced

On May 28, 2026, CEO Avishai Abrahami simultaneously posted a memo on X and emailed staff, announcing that Wix would cut around 1,000 jobs, or roughly 20% of its workforce, from 5,277 employees to about 4,200 — the largest layoff in the company’s history. He cited “the fast evolution of AI capabilities” and the need for a “faster, leaner, and flatter organization” as central motives for the restructuring.

Abrahami also pointed to the stronger shekel as creating “structural pressure” on Wix’s ability to operate, given that more than 60% of its staff — over 3,000 people — are based in Israel.

Rebuilding Around AI-Native Roles

Alongside the cuts, Wix is redesigning roles around AI. Abrahami highlighted new “AI-native” positions such as the “Xengineer,” described as a “design-first engineer” who uses AI throughout the development lifecycle, and “Creators,” roles that integrate AI into content and product work. He characterized the AI transition as the most significant shift in how software companies are built since the advent of modern programming languages in the 1970s.

Employees affected by the layoffs are to receive what Abrahami called personally curated separation packages, with notifications delivered individually.

Wider Industry and Worker Perspective

Industry observers place Wix alongside companies like Snap, Block, and Atlassian, which have also invoked AI in explaining job cuts this year. Supporters of the move frame it as necessary to keep Wix competitive amid the “SaaSpocalypse,” in which AI can replicate legacy software tools and platforms. Critics, including some labor advocates, see a pattern of executives using AI and macroeconomics to justify large-scale redundancies while resetting expectations for a smaller, more automated workforce.

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