Wix slashes 1,000 jobs citing AI shift and currency pressure

Citing the rapid evolution of artificial intelligence and a challenging currency exchange environment, Wix has confirmed the layoff of 1,000 employees. The reduction represents 20 percent of the company’s total workforce, marking a significant structural pivot as the web-development firm moves to flatten its internal management hierarchy.

Cofounder and CEO Avishai Abrahami announced the cuts in an internal message shared via X on May 28. He pointed to the strengthening of the Israeli shekel against the U.S. dollar as a primary catalyst for the downsizing. Because the company’s costs are largely shekel-denominated while its revenue flows in dollars, the current exchange rate created structural pressure on the firm's operational sustainability.

Beyond currency issues, Abrahami framed the layoffs as a necessary adaptation to the AI-driven landscape. By removing middle-management layers, the company aims to shorten the distance between leadership and junior staff to better compete in a market increasingly defined by automation. Wix joins a growing list of tech giants, including Meta, Snap, and Amazon, that have cited AI-related efficiency goals as a justification for large-scale staff reductions. Recent industry data suggests AI-linked restructuring accounted for 50,000 job cuts across the sector last year.