Wix laying off about 20% of its workforce. CEO cites AI, exchange rates in announcing cut

Wix, the website-building platform, announced it is laying off approximately 20% of its workforce. CEO Avishai Abrahami attributed the decision to the 'fast evolution of AI capabilities' and currency exchange rate pressures. The layoffs represent a significant reduction for the company, which had previously expanded its headcount during the pandemic-driven digital boom.

Abrahami stated that the company needs to operate more efficiently in light of technological changes and macroeconomic headwinds. He did not specify which departments would be most affected, but noted that the restructuring is intended to position Wix for long-term growth.

This move follows a broader trend in the tech industry, where companies are reducing staff after periods of aggressive hiring. Wix's stock rose slightly following the announcement, suggesting investor approval of the cost-cutting measures. The company's reliance on AI capabilities signals a strategic pivot toward automation, which Abrahami framed as essential for competitiveness.