Website builder Wix has laid off 20 percent of its staff, amounting to 1,000 employees, Reuters and others have reported.
On May 28, Wix cofounder and CEO Avishai Abrahami shared his internal message to the Wix team on X, stating that the reasons behind the layoff are the strengthening of the Israeli shekel against the U.S. dollar (Wix is an Israeli company) and the “fast evolution of AI capabilities.”
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“As the majority of our teams are Israel-based, a very meaningful portion of our costs are shekel-denominated, while our revenue is largely dollar-denominated,” Abrahami wrote of the former. “This creates a structural pressure on our ability to operate at our current scale. It is a reality that directly shapes what is sustainable for our company.”
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In terms of AI, Abrahami wrote that companies need to adapt to AI changes in order to compete, and that “We are moving to a structure with fewer levels between any member of our leadership and the most junior person on the team.”
It’s only the latest announcement of a major tech company laying off workers to usher in AI, including Meta, Snap, Amazon, and Pinterest. A Dec. 2025 report stated that AI was linked to 50,000 job cuts last year.
