Israeli tech giant Wix confirms cutting 20% of workforce amid shekel surge, AI growth

Wix, a maker of do-it-yourself website building software, confirms reports that it will cut 20 percent of its workforce in Israel and abroad, citing the strength of the shekel and the adoption of AI tools and investments.

“It is clear to us that in this new era, companies need to make this change in order to lead and compete or risk falling behind,” Wix co-founder and CEO Avishai Abrahami says in a message to employees. “We need to become a faster, leaner, and flatter organization.”

As the first reason for the round of layoffs, Abrahami cites the appreciation of the shekel over the past few quarters, which is driving up costs.

“As the majority of our teams are Israel-based, a very meaningful portion of our costs are shekel-denominated, while our revenue is largely dollar-denominated,” says Abrahami. “This creates a structural pressure on our ability to operate at our current scale.”

As the second reason, Abrahami lists the “fast evolution of AI capabilities” and the need to shift to “AI-native ways of working.”

At the end of March, Wix employed 5,277 people, of whom more than 60% are based in Israel.