Wix announced a cut of about 20% of its workforce, a move expected to include layoffs of between 800 and 1,000 employees.
CEO and co-founder Avishai Abrahami announced the decision in a post on X, where he wrote that this was “one of the most difficult decisions” he has made.
The strengthening of the shekel created “structural pressure” on the company
According to him, the decision stems from two main factors: the strengthening of the shekel against the dollar and the changes brought by the AI revolution to the high-tech industry.
Avishai Abrahami explained that most of the company’s revenues are in dollars, while a significant share of its expenses, primarily employee salaries, are paid in shekels, since most of the company’s teams are based in Israel.
He said that the strengthening of the shekel over the past year created “structural pressure” on the company’s operations. “The Israeli shekel strengthens against the US dollar almost every day,” he wrote. “Since most of our teams are located in Israel, a very significant portion of our costs are denominated in shekels, while most of our revenues are in dollars.”
Artificial intelligence is changing the way software companies operate
Alongside this, he argued that the development of artificial intelligence is fundamentally changing the way software companies operate. “We are witnessing the most significant shift in how companies are built since the invention of modern programming languages in the 1970s,” he wrote. According to him, companies that fail to adapt to this change risk being left behind.
Avishai Abrahami noted that Wix has already begun making adjustments to the new era, including creating new roles based on working with artificial intelligence. He said the company aims to become “faster, leaner, and flatter,” with fewer management layers and fewer employees.
“This is a painful change, one that affects the lives of many, but I truly believe we have no other choice — we must evolve.”
The move is intended to secure the company’s future
In a message to employees who will be laid off, Avishai Abrahami wrote: “Thank you for the effort, the talent, the passion, and the friendship.” He said the company will provide personalized severance packages and will work to support employees “with sensitivity and dignity.”
He also stressed that the move is intended to ensure the company’s future. “If we do not make this change, we will fail in our responsibility to our users, our shareholders, and our employees,” he wrote.
The Manufacturers Association responded to the layoffs announcement, arguing that it is a direct result of the weakening of the dollar against the shekel. “The market’s reaction to the collapse of the dollar is faster and more severe than we expected,” the association said.
They added: “We are telling the government and the Bank of Israel that every worker who is now laid off will be their full responsibility. Unfortunately, and in the absence of any government action, industry and high-tech companies will make decisions based solely on economic considerations.”