Wix to Cut 1,000 Jobs, 20% of Staff, as AI Costs and Losses Mount
Updated
Updated · CTech · May 25
Wix to Cut 1,000 Jobs, 20% of Staff, as AI Costs and Losses Mount
5 articles · Updated · CTech · May 25
Wix plans to eliminate about 1,000 roles over the coming months — roughly 20% of its 5,277 employees — in the biggest layoff round in the company’s history.
A nearly 50% stock slide this year and a return to losses drove the move: first-quarter net loss reached $57.5 million even as revenue rose 14% to $541 million, while cash flow fell 21% to $112 million.
Base44, Wix’s fast-growing AI coding business, has become a central pressure point: its ARR hit $150 million in May, but heavy marketing, computing costs and extra payments to founder Maor Shlomo lifted expenses sharply.
Operating expenses jumped 50% to $423 million, or 35% of revenue, after Wix launched a $1.6 billion buyback that cut cash to $900 million and doubled down on AI investment.
The cuts are expected to reach all departments, underscoring investor fears that AI-generated websites could erode Wix’s core business even as the company races to build its own AI tools.
With rising revenue and a huge share buyback, why is Wix now facing its largest layoff in history?
As AI upends the software industry, are Wix's struggles a warning for millions of its users?
Wix Lays Off 1,000 Employees in 2026 as AI Spending and Shekel Surge Reshape Israeli Tech
Overview
In 2026, Wix faced a challenging economic environment and responded with significant workforce reductions. This move was driven by the company’s substantial investments in artificial intelligence, including the Harmony AI-powered website builder and the acquisition of Base44, which enabled advanced AI-driven features. While these AI initiatives are crucial for future growth and innovation, they have also led to rising costs, especially in marketing and computing. As a result, Wix had to make tough operational decisions, highlighting the complex balance between investing in new technology and managing financial pressures in a rapidly changing market.