Wix preps for largest layoff in company history, cutting up to 1,000 jobs amid AI pressures and profit losses
The Israeli web development company is set to cut roughly 20% of its global workforce as it pivots toward AI amid eroding profitability and a 50% collapse in its share price this year
It is being widely reported that Wix is planning to lay off between 800 and 1,000 employees in the largest downsizing in its history. The cuts will affect staff both in Israel and globally. At the end of the first quarter, the company employed 5,277 people worldwide, with more than 60% of them based in Israel. It remains unclear how many of the cuts will fall on Israeli staff or whether the layoffs will span all departments or focus on specific roles.
Founded in 2006, Wix established itself as one of Israel's leading technology companies through its platform for building websites without coding knowledge. During 2021 and 2022, Wix nearly doubled its workforce to around 6,100 employees before cutting back steadily in subsequent years.
The layoffs come after Wix posted a net loss of 57.5 million dollars in the first quarter despite a 14% revenue rise to 541 million dollars. Operating expenses jumped 50% to 423 million dollars, equal to 35% of revenue compared to 21% in the same quarter of 2025. Cash flow fell 21% to 112 million dollars.
On top of the poor quarter, Wix has nearly emptied its cash reserves, spending approximately 1.7 billion dollars to buy back 30% of its own shares from investors in a bid to boost its stock price. This left the company with just 900 million dollars in cash. The company simultaneously carries around 1 billion dollars in debt owed to bondholders due in four and a half years. With marketing expenses jumping 90 million dollars in the first quarter alone, excluding the cost of two Super Bowl advertisements, the company is burning through cash on multiple fronts at once.
Much of Wix's recent growth has come from Base44, the vibe-coding platform it acquired last year for 80 million dollars. Base44's annual recurring revenue reached 150 million dollars in May, well ahead of targets. However, the platform's rapid growth has increased computing costs and triggered additional performance payments to founder Maor Shlomo, who received 38 million dollars in the latest quarter alone.
The company previously carried out layoffs in 2022 and 2023, primarily among overseas service and support staff. The current round is significantly broader and could signal a major change of direction in the company's global operations.
Wix has declined to comment on the news.