Wix to Cut Around 20% of Workforce as CEO Points to AI Shift and Currency Pressure- Website development platform Wix is preparing to lay off approximately 20% of its global workforce, according to comments made by CEO Avishai Abrahami, who cited the rapid rise of artificial intelligence and mounting financial pressure linked to currency exchange rates as key reasons behind the move.
The Israel-based technology company announced the decision in a post shared by Abrahami on X early Thursday, describing the layoffs as part of a broader restructuring effort aimed at reshaping how the company operates in an increasingly AI-driven technology landscape.
Abrahami said the company is facing what he described as one of the biggest transformations in software development and business operations in decades.
“We have witnessed the most significant shift in how companies are built since the invention of modern programming languages in the 1970s,” Abrahami wrote in the statement.
According to the CEO, the rise of advanced artificial intelligence tools is fundamentally changing how businesses are developed, managed, and scaled. He suggested that companies must adapt quickly to remain competitive as AI increasingly automates tasks that previously required large teams and complex organizational structures.
“This is not just about adopting new tools,” Abrahami said. “It is about rewiring how companies are built, how they think, how they manage and how they operate.”
As part of the restructuring, Wix plans to reduce management layers and streamline decision-making processes. Abrahami said the company wants to operate with a leaner structure that can respond more quickly to technological shifts and changing market conditions.
While Wix did not immediately confirm the total number of affected employees, a 20% reduction would represent a significant portion of the company’s workforce. The company has thousands of employees spread across multiple countries and departments, including engineering, product development, marketing, and customer support.
In addition to the growing influence of AI, Abrahami also pointed to economic pressures tied to currency exchange rates.
The CEO noted that the continued strengthening of the Israeli shekel against the US dollar has created what he described as “structural pressure” on the company’s operating costs. Because many technology companies in Israel pay employees and operational expenses in shekels while earning substantial revenue in dollars, fluctuations in currency values can significantly affect profitability and operating margins.
The stronger shekel has reportedly increased Wix’s costs at a time when many global tech companies are already facing pressure to improve efficiency and reduce spending.
The layoffs come amid a broader trend across the technology industry, where companies are increasingly restructuring operations around artificial intelligence tools and automation technologies.
Over the past two years, major tech firms including Google, Microsoft, Amazon, Meta, and Salesforce have all implemented workforce reductions while simultaneously increasing investments in AI development. Many companies argue that AI is changing the nature of work across software engineering, customer service, marketing, and design.
Industry analysts say businesses are now under growing pressure to balance aggressive AI adoption with cost-cutting measures, especially as investors demand improved profitability following years of rapid hiring and expansion.
Wix, known for its website-building platform and online business tools, has itself invested heavily in AI-powered features in recent years. The company has introduced AI website generators, automated design tools, and smart content creation systems aimed at simplifying web development for users without coding experience.
The latest restructuring suggests Wix may now be accelerating its internal transformation to align more closely with the AI-powered future it has been building into its products.
The announcement also reflects the growing impact AI is having not just on products and services, but on corporate structures and employment strategies within the technology sector.
Some analysts believe AI-driven automation could significantly reduce the need for large operational and management teams in certain areas of tech companies, particularly in roles involving repetitive processes or coordination tasks.
At the same time, workforce reductions tied to AI continue to raise concerns among employees and labor experts about the long-term impact of automation on jobs across the global technology industry.
Wix has not yet provided additional details regarding which departments will be most affected, when the layoffs will take effect, or whether severance packages will be offered to impacted employees.
The company also did not immediately respond to media requests seeking further clarification on the scale of the cuts or future hiring plans.
Despite the restructuring, Wix remains one of the best-known website creation platforms globally, serving millions of users ranging from small businesses and freelancers to online stores and enterprise clients.
However, the latest announcement underscores how rapidly evolving AI technologies are forcing even established tech companies to rethink workforce strategies, operational structures, and long-term business models. Oura Unveils Ultra-Thin Ring 5 Ahead of Expected IPO Push | Maya
