Wix plans 800-1,000 layoffs

Wix.com, the website development platform listed on Nasdaq (WIX), will lay off between 800 and 1,000 employees, the largest workforce reduction in its history. The cuts will affect staff in Israel and international offices, following a shift back to full-time office work announced months earlier, which the company cited as necessary to accelerate development and decision-making. The decision comes amid financial challenges and rapid technological changes, particularly the rise of generative AI. Wix’s first-quarter revenue grew 14.3% to $541 million, but increased marketing costs and AI-related investments led to a net loss, pushing its share price down 5% after the earnings report. Founded in 2006 by Avishai Abrahami, Nadav Abrahami, and Giora Kaplan, Wix has long been a leader in Israel’s tech sector, offering no-code website-building tools. Last year, it acquired Base44, an AI-powered coding company, to expand beyond traditional web development. The acquisition was part of Wix’s strategy to integrate AI-driven solutions into its platform. The layoffs follow smaller downsizing rounds in 2022 and 2023, primarily targeting overseas service and support roles. Analysts suggest the current round may signal a broader restructuring as Wix adapts to market pressures and AI competition. The company has not issued a comment on the report. Wix’s struggles reflect broader industry trends, where AI advancements are reshaping digital product development and forcing companies to reallocate resources. The layoffs underscore the financial strain of transitioning to AI while maintaining growth in a competitive market.