Wix CEO to employees: “I won’t pretend that we’re not looking at potential changes”
Company reportedly preparing to cut 1,000 jobs as AI pressures mount.
Wix CEO Avishai Abrahami sought to calm employees after reports emerged that the company is preparing the largest layoffs in its history, potentially cutting around 1,000 employees, or 20% of its workforce.
In an internal email sent to all employees on Monday, Abrahami acknowledged that the company is examining structural changes, but stopped short of officially confirming the layoffs.
“I won’t pretend that we’re not looking at potential changes,” Abrahami wrote. “Like any company in our position, we are carefully reviewing our structure, our priorities and our costs. When we have concrete updates, you will hear them directly from us, and not from anyone else.”
The message came after reports that Wix is preparing deep cuts following a sharp decline in its stock price and growing pressure from the AI transformation sweeping through the software industry.
Wix shares have lost nearly 50% of their value since the beginning of 2026, reducing the company’s market value to roughly $2 billion, down from nearly $20 billion at its peak in 2021.
Abrahami’s email focused largely on the fact that employees learned about the possible layoffs through media reports rather than directly from management.
“Earlier today, several articles were published in the media reporting that Wix is planning layoffs. I know that this immediately spread across our sites and teams around the world, and it’s natural to be concerned and have questions.
“What I am truly sorry about is that this discussion reached the press before we had a chance to speak with you directly,” he wrote. “This is not how I want you to hear about anything that might affect you, your colleagues or your teams. When we make decisions, we will communicate them in the most respectful and responsible way we can.”
Wix has become one of the clearest examples of the growing crisis facing software companies as investors increasingly fear that artificial intelligence could replace many traditional software tools and reduce demand for large workforces.
The company employed 5,277 people at the end of the first quarter, with more than 60% based in Israel.
The pressure on Wix has intensified despite aggressive attempts to reposition itself around AI. Over the past year, much of the company’s growth has come from Base44, the AI-driven “vibe coding” platform founded by Maor Shlomo and acquired by Wix.
The platform allows users to build software through natural-language prompts instead of traditional coding and has grown rapidly. According to Wix, Base44 reached an annual recurring revenue rate of $150 million in May, significantly ahead of expectations.
But the growth has also come with rising costs. Wix’s operating expenses jumped 50% in the first quarter to $423 million, while the company posted a net loss of $57.5 million despite revenue growth of 14%.
At the same time, Wix spent $1.6 billion buying back its own shares in an effort to reassure investors, a move that sharply reduced its cash reserves but failed to stop the stock’s decline.
The company also invested heavily in marketing, including two Super Bowl advertisements this year, one for Wix and another for Base44.
Inside the company, management had already begun preparing employees for broader changes. Wix recently required workers to return to full-time office work and announced changes to development roles to adapt to the AI era.
