Shares of Wix.com slid 11.6% in pre-open trading after the web development platform confirmed a sweeping reorganization that will remove roughly 1,000 positions - about one-fifth of its global headcount - and lowered its financial outlook for fiscal year 2026. Management attributed the guidance reduction both to the immediate operational disruption produced by the restructuring and to a sharper-than-expected slowdown in the company's Partners business during late May and early June.
The company revised its full-year targets to reflect more muted growth across key metrics. Bookings growth has been reduced from a prior mid-teens percentage forecast down to a low-teens percentage range, while revenue growth guidance was trimmed from mid-teens to a low- to mid-teens pace. Wix stated these adjustments imply approximately $50 million less in bookings and about $25 million less in revenue for the year.
Despite the downward revisions to topline expectations, Wix said the restructuring will generate roughly $70 million of non-GAAP cost savings in 2026, with a full annualized run rate of around $150 million. The company also now expects free cash flow - excluding acquisition and restructuring costs - to be about $420 million for the year, which is about $20 million higher than its prior plan.
CEO Avishai Abrahami had previously cited two drivers behind the strategic change: a strengthening Israeli shekel, which increases the dollar-equivalent cost of a workforce paid largely in shekels, and a structural shift toward AI-native staffing. Management framed the move as a response to those pressures and as a means to realign the company's cost base with its evolving talent needs.
Wix’s latest announcement compounds an already difficult period for the company. Earlier, the firm reported Q1 2026 adjusted earnings per share of $0.68, a miss of more than 44% versus the consensus estimate of $1.22, though revenue grew 14% year-over-year to $541.2 million. Those results prompted widespread analyst price target reductions and left the stock trading near its 52-week low of $51.33, far below its 52-week high of $190.93.
The equity’s decline occurred amid a broader market sell-off. The Nasdaq fell 4.2%, the S&P 500 declined 2.6%, and the Dow Jones slipped 1.4% as investors pulled back from riskier, growth-oriented issues. Within that risk-off context, Wix shares reached a session low of $51.33 in pre-market activity before extending losses toward $46.30, illustrating how quickly sentiment can shift when company-specific challenges coincide with weakness across the wider market.
The combination of a deep workforce reduction, a formal downgrade to full-year guidance, an earnings miss earlier in the quarter, and an unfavorable macro market environment have together weighed on the stock in pre-market trading. Management projects meaningful cost savings on an annualized basis, but the near-term revenue and bookings hits and the immediate disruption linked to the restructuring were central to the company's decision to lower expectations.
Key takeaways
- Wix is cutting approximately 1,000 jobs, about 20% of its workforce, and has lowered fiscal 2026 bookings and revenue guidance.
- The guidance revisions imply roughly $50 million less in bookings and $25 million less in revenue for the year, alongside an expected $70 million in non-GAAP cost savings in 2026.
- The company still projects roughly $420 million of free cash flow for 2026, about $20 million above the prior plan, and an eventual annualized cost savings run rate near $150 million.
Risks and uncertainties
- Operational disruption from the workforce reduction could further affect execution and near-term results - a risk to company-specific performance and to investor sentiment toward growth tech names.
- A continued slowdown in the Partners segment presents downside risk to bookings and revenue, particularly if weakness persists beyond the late-May and early-June period cited by management - an issue for SaaS and partner-dependent business models.
- Macroeconomic and market weakness, as reflected in the broader sell-off of technology and growth stocks, could amplify share price volatility and constrain the firm's ability to stabilize valuation in the short term.