Wix will cut roughly 20% of its workforce as the company restructures operations around artificial intelligence adoption and mounting financial pressure linked to currency fluctuations, Chief Executive Officer Avishai Abrahami said in a message to employees.
In a lengthy internal note shared publicly on social media, Abrahami described the layoffs as “one of the hardest decisions” he has made while arguing the company must become “faster, leaner, and flatter” to compete in an AI-driven technology landscape. “Companies that embrace this change will not only build faster; they will build things the previous generation literally could not have imagined,” Abrahami wrote on X.
The layoffs come as technology firms worldwide increasingly restructure around artificial intelligence, automation, and productivity optimization while reducing middle-management and operational roles.
Abrahami said one major factor behind the cuts was the strengthening Israeli shekel against the U.S. dollar. Because much of Wix’s workforce is based in Israel while most revenue is generated in dollars, the exchange-rate imbalance created what he described as “structural pressure” on the company’s long-term sustainability.
READ: Wix cuts 1,000 jobs amid AI transition (May 26, 2026)
The second driver for this layoff, he said, was the rapid evolution of AI capabilities reshaping how software companies operate and develop products. “We have witnessed the most significant shift in how companies are built since the invention of modern programming languages in the 1970s,” he said.
The company has already introduced new AI-focused roles internally, including positions called “Xengineer” and “Creators,” which Abrahami described as part of a broader transition toward “AI-native ways of working.”
The CEO also emphasized flattening the company’s organizational structure, reducing management layers, and accelerating internal decision-making. “It is clear to us that in this new era, companies need to make this change in order to lead and compete or risk falling behind,” he wrote. “We are choosing to compete.”
READ: Cisco announces 4,000 job cuts after posting record (May 14, 2026)
The announcement reflects broader anxiety across the global technology sector as AI adoption rapidly transforms software engineering, product development, customer support, and administrative operations.
Major technology firms including Microsoft, Google, Cisco, and LinkedIn have recently announced layoffs or restructuring initiatives tied partly to artificial intelligence investments and operational shifts.
Abrahami acknowledged the emotional toll of the decision, telling departing employees that the company would provide “personally curated separation packages” and handle layoffs with “sensitivity, respect, and care.”
The Wix announcement also highlights how AI disruption is increasingly extending beyond Silicon Valley into global software and internet companies, adapting to changing investor expectations and evolving workplace dynamics.