Wix is reportedly preparing for one of the largest layoffs in the company’s history, with approximately 1,000 employees expected to be impacted. The cuts would represent nearly 20% of the company’s workforce and come after weaker financial performance and a significant decline in the company’s stock price this year.
The move highlights how AI is rapidly changing the digital marketing and software industries, including the website builder space. As AI-powered tools continue to evolve, many traditional development, support, and operational roles are being altered or consolidated around AI-driven workflows and automation.
At the end of the first quarter of 2026, Wix employed more than 5,200 people globally, with a large portion of its workforce based in Israel.
Wix’s Financial Pressures
Wix’s layoffs come despite strong top-line growth. The company reported a 14% increase in quarterly revenue to $541 million, but still posted a $57.5 million net loss. Meanwhile, cash flow declined 21% to $112 million as operating expenses surged 50% year-over-year to $423 million. Rising operational expenses and AI-related investments appear to be placing increasing pressure on profitability.
Some of Wix’s earlier decisions now appear to have foreshadowed broader organizational changes. According to CTech, the company recently pushed for full-time office attendance, a move that reportedly created internal resistance among employees. Wix also reduced the workforce slightly earlier this year before reports of larger layoffs were announced. At the same time, the company spent $1.6 billion on share buybacks, reducing cash reserves to roughly $900 million while its market valuation continues to face pressure.
For businesses and digital marketers, the situation at Wix highlights how quickly the digital landscape is changing. Companies that can adapt to new technologies while maintaining operational efficiency will likely be in a stronger position moving forward.
