Wix to cut about 20% of workforce; CEO cites AI and strong shekel

Israel-based web platform Wix announced plans to reduce roughly 20% of its global workforce after CEO Avishai Abrahami said a strong shekel versus the dollar and the rapid evolution of artificial intelligence made the move necessary. The announcement was posted on X by Abrahami early Thursday.

Abrahami said most Wix teams are Israel-based, so a large portion of costs are shekel-denominated while revenues are largely dollar-denominated, creating structural pressure on the company’s ability to operate at its current scale. Reuters reports Wix had 5,277 employees at the end of Q1 and the cuts equate to roughly 1,000 roles. The CEO also framed AI as both an opportunity and a driver of organizational change that reduces the need for layers of staff.

The market reaction has been noticeable: Reuters notes Wix’s Nasdaq-listed shares have fallen nearly 50% so far in 2026. Management said the currency-driven cost pressure and the need to refocus resources on core AI-enabled products prompted the largest restructuring in the company's history, according to multiple reports.

In a broader economic context, the shekel’s appreciation—around 30% versus the dollar over the past year—has intensified cost pressures on Israeli tech firms that earn in dollars but incur local, shekel-based expenses. Industry groups have pointed to limited government or central bank intervention as a factor pushing firms to take market-driven actions such as layoffs and restructuring. This dynamic may continue to weigh on other export-oriented tech companies in the region.

Analysts say the cuts could improve near-term margins and free cash flow but warn of potential headwinds to growth and product development timelines. Investors will watch WIX share performance, upcoming quarterly results and adoption metrics for Wix’s AI products to assess whether the restructuring improves profitability without undermining long-term competitiveness.