Israeli software company Wix is preparing for layoffs that would affect 800-1000 employees, which would come to around a quarter of its workforce. Wix employed 5,277 people at the end of the first quarter and more than 60% of staff are based in Israel, according to the company.
The cuts come in spite of an increase in revenue. While there was a 14% growth in revenue in the last quarter, Wix returned to a quarterly net loss of $57.5 million. $1.6 billion buyback in March drained cash reserves down to $900 million without lifting the stock, leaving the company valued at roughly $2 billion.
The reported workforce reductions come as Wix deepens its AI investment. Over the past year, the company acquired Israeli AI startup Base44 for $80 million and also purchased startup Hour One to strengthen its generative AI and web creation capabilities. Reports claim that Base44’s “vibe-coding” platform is now generating around $150 million in annual recurring revenue.
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The company has increasingly positioned AI as a core layer across its website creation ecosystem, allowing users to automate elements of web design, content generation and customer interaction tools. However, this technology is now being linked to the reduction of human roles internally.
Wix CEO Avishai Abrahami had said earlier this year that a “massive amount” of roles will shrink due to AI advancement. He predicted that roughly 70% of the top 20 most popular jobs in the U.S. today will be affected by AI over the next five to 10 years.
Abrahami said he’s concerned about computers outsmarting humans, a concept often referred to as artificial general intelligence, which some tech leaders have said we have already surpassed in some ways. In that reality, humans “become the monkeys,” the CEO said. He also said when he grew up, getting to such a point “was a science-fiction thing,” and it’s now becoming a reality.
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Abrahami had also added that AI will also create new opportunities and job types, citing the example of Wix’s new role called the xEngineer, described as a design-first engineer with deep domain expertise who uses AI as a key part of every workflow.
While companies have been amping up their AI use for a while, some of them are also facing increased costs due to the technology. Microsoft recently had to scale back, canceling most of its direct Claude Code licenses. Bryan Catanzaro, vice president of Applied Deep Learning at Nvidia, recently suggested that AI use isn’t saving companies from labor costs, instead it is costing them more than the humans they employ.