Website development tools company Wix.com (Nasdaq: WIX) plans to lay off between 800 and 1,000 employees, in the largest downsizing in its history, sources inform “Globes”. The wave of layoffs will affect the workforce both in Israel and globally, which amounts to thousands of people.
The current decision comes just a few months after Wix cancelled its hybrid work model completely and required its employees in Israel and in other centers around the world to return to full-time work at its offices, five days a week. At the time, the company’s management explained that this step was necessary in order to speed up development and reaction time. It now emerges that the return to the office was part of a broader restructuring.
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Since it was founded in 2006 by Avishai Abrahami, Nadav Abrahami, and Giora Kaplan, Wix has established its status as one of Israel’s leading technology companies, through a platform for developing websites with no need for coding knowledge.
In the past year, Wix has had to deal with rapid technological changes, chiefly the advent of generative artificial intelligence (AI), which changes the way in which websites and digital products are built. Last year, as part of its effort to adapt itself to the new reality, Wix acquired vibe coding company Base44, founded by Maor Shlomo. The company is a developer of tools that facilitate the creation of applications and products by means of text commands and the use of AI. The acquisition was seen as one of the most significant steps taken by Wix in its attempt to broaden its activity beyond traditional website construction and to deepen its presence in AI.
Financial pressure
Along with the technological changes, Wix has also been dealing with financial pressures from the capital market. Its most recent financials presented results that were below analysts’ estimates, although the company’s annual guidance was left unchanged. Wix’s first quarter revenue grew by 14.3% to $541 million, but the increase in marketing costs and investment in connection with new AI products led to a switch to a net loss. After the release of the financials, Wix’s share price fell by 5% in late trading.
Wix carried out downsizing rounds in 2022 and 2023, mainly among service and support staff overseas. The current round is much broader, and could signal a significant change of direction in the company’s global activity.
No comment on the report was forthcoming from Wix.
Published by Globes, Israel business news – en.globes.co.il – on May 25, 2026.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2026.
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