Wix slashes 1,000 jobs as AI and currency pressures mount

Website builder Wix has cut 1,000 jobs, reducing its workforce by 20%. The company cited financial strain and the rapid advancement of AI as key reasons for the decision. CEO Avishai Abrahami announced the restructuring in a recent statement. Most of Wix’s operations are based in Israel, where costs are paid in shekels but revenue comes in dollars. A stronger shekel against the U.S. dollar has squeezed profits, forcing the company to make cuts. Abrahami highlighted this currency mismatch as a major factor behind the layoffs.

The move follows a broader trend in the tech industry. Companies like Meta, Snap, Amazon, and Pinterest have also slashed jobs, often linking the cuts to AI advancements. Wix is now streamlining its structure to reduce management layers and speed up decision-making. Abrahami explained that the company must adapt to the 'fast evolution of AI capabilities.' The restructuring aims to create a flatter organisation, bringing junior employees closer to leadership. This shift, he said, will help Wix stay competitive in a changing market.

The layoffs leave Wix with a leaner team as it adjusts to financial and technological pressures. The company joins a growing list of tech firms reshaping their workforces in response to AI and economic challenges. The changes take effect immediately.