In the wake of "Globes" report on Sunday that Wix is set to lay off 800-1,000 employees, cofounder and CEO Avishai Abrahami wrote an email distributed internally to staff In which he tried to reassure them and apologized for the media reports.
Abrahami wrote, "I know that this has immediately spread to our sites and teams around the world, and it is natural that there are concerns and questions." Abrahami confirmed that the company is exploring possible changes but stressed that no final decisions have yet been made. "I will not pretend that we are not exploring potential changes. Like any company in our situation, we are carefully examining our structure, our priorities and our costs."
However, the main focus of Abrahami's message was not on the possibility of cuts but on the way things were revealed. He expressed regret that the information first reached the media and not the company's employees themselves. "I am truly sorry that this conversation reached the press before we had a chance to speak to you directly," he wrote. "This is not the way I would want you to hear about anything that may affect you, your colleagues or your teams." He concluded, "As soon as decisions are made, we will inform you in the most responsible and respectful way we can."
The current situation is the result of one of the most challenging times that Wix has been through in recent years. The company, which for years has been a global leader in the field of website building, is facing a profound change in the market due to the emergence of creative AI. If in the past, building a website involved manual work using dedicated platforms, today AI tools allow websites, products and applications to be created using simple text commands, at a much higher speed.
As part of the attempt to adapt to the new reality, Wix has invested significant resources in the field of AI over the past year and even acquired Maor Shlomo’s AI company Base44, which has developed a "web coding" tool. The move marked an attempt to expand the company's activities beyond the traditional world of website building and deepen its presence in the developing AI market.
Alongside the technological challenges, the company is also facing financial pressures. In its most recent reports, Wix reported revenue that grew 14.3% to $541 million, but the increase in expenses and new investments in the field of AI led to a loss in profitability and a shift to a net loss. The company's stock reacted by falling after the results were published and the company currently has a market cap of just $2.316 billion.
Several months ago, Wix canceled the hybrid work model and required employees to return to full-time work from the offices, a move that was explained at the time as a desire to increase speed of execution and organizational efficiency. It now appears that this change may have been part of a broader reorganization process within the company. While in previous years, Wix has carried out relatively targeted rounds of layoffs in the service and support systems, the current move may mark a deeper change. If it does indeed take place on the scale disclosed, it would be the largest layoff in the company's history.
Published by Globes, Israel business news - en.globes.co.il - on May 27, 2026.
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