Wix.com Ltd. reported a significant personnel reduction and attendant adjustments to its 2026 outlook, prompting a roughly 10% decline in its stock on Monday. The company said it is eliminating about 1,000 roles, representing approximately 20% of its workforce, as part of an organizational realignment that was communicated on May 28, 2026.
According to the company, the realignment entails scaling down or discontinuing specific activities, initiatives, products and subsidiaries to streamline operations and reallocate capital and talent toward higher-priority initiatives. The move is expected to produce pre-tax restructuring charges in the range of $30 million to $35 million, primarily tied to severance and related benefits.
Wix lowered its fiscal 2026 guidance in light of the changes. Bookings growth was revised from the prior mid-teens percentage expectation to a low-teens percentage range, while revenue growth was cut from mid-teens to a low- to mid-teens percentage pace. Management quantified the reductions as approximately $50 million less in bookings and roughly $25 million less in revenue for fiscal 2026.
The company said the weaker near-term performance reflects both the planned organizational changes and an unexpected slowdown in its Partners business during late May and early June that exceeded prior expectations. Wix noted that two product lines - Wix Harmony and Base44 - continue to perform in line with the assumptions that underpinned guidance issued with its first-quarter earnings.
On the cost side, management expects the realignment to yield about $70 million in non-GAAP cost savings in 2026, with a full-year run rate of roughly $150 million as lower payroll and overhead expenses take effect. Excluding acquisition and restructuring costs, Wix projects free cash flow of about $420 million for the year, an increase of $20 million versus previous plans. The company also said it will maintain its free cash flow margin guidance in the high-teens percentage range.
Most of the restructuring charges are expected to be recorded in the second quarter of 2026, with cash outlays for those charges anticipated in the second half of the year. Management framed the changes as a reallocation intended to concentrate investment on strategic priorities while lowering ongoing cost levels through reduced payroll and overhead.
Contextual note: The company has communicated specific numerical impacts and timing for charges, expected savings, and revised bookings and revenue figures as part of this reorganization. No additional details beyond those published by the company were provided.