Wix revealed on Thursday that it will cut its staff by approximately 20%, according to a company-wide message posted on X by Co-Founder and CEO Avishai Abrahami.
Abrahami attributed the decision to two main factors. First, he pointed to the exchange-rate dynamic between the Israeli Shekel and the US Dollar. "The first reason is the Shekel/Dollar rates. In the past few quarters the exchange rate between the Shekel and the US dollar has shifted significantly as the Israeli Shekel strengthens against the US Dollar almost every day," he wrote. The company said this currency movement places strain on its operations because most of its teams are based in Israel and have shekel-denominated costs, while much of the company’s revenue is received in US dollars.
The second factor cited was rapid change in artificial intelligence capabilities and the resulting evolution in how technology businesses are organized and operate. Abrahami described this transformation as "the most significant shift in how companies are built since the invention of modern programming languages in the 1970s." He framed the workforce reduction as part of adaption to that shift.
As part of the reorganization, Wix said it has created new roles such as Xengineer and Creators, designed around AI-native working methods. The company expects the restructuring to produce a flatter organizational chart with fewer management layers between senior leaders and junior staff.
Wix indicated that affected employees will be contacted directly and will receive separation packages. The announcement emphasized that these changes are intended to ensure the company can continue serving the millions of users who run their businesses on the Wix platform.
The company message combined the operational implications of an appreciating shekel for a largely Israel-based cost structure with a stated need to adapt to AI-driven shifts in technology work patterns. Wix framed the personnel reductions as a response to those twin pressures, and as a step toward reorganizing around new AI-oriented roles and leaner management.