tech
Wix is laying off 20% of staff. Read the memo
Wix CEO Avishai Abrahami announced a 20% staff reduction, citing AI advancements and currency shifts as driving factors for the layoffs.
TL;DR
- Wix is reducing its workforce by approximately 20%, impacting around 1,000 employees.
- CEO Avishai Abrahami cited the rapid evolution of AI capabilities as a key driver for the layoffs.
- The strengthening Israeli shekel against the US dollar is also cited as a factor creating structural pressure on operational costs.
- The company aims to become a faster, leaner, and flatter organization.
- New AI-native roles like 'Xengineer' and 'Creators' have been introduced.
- Wix faces potential disruption from AI replicating software products, a phenomenon termed 'SaaSpocalypse'.
- Wix's share price has declined by 23% year-to-date.
- Affected employees will be contacted directly and offered separation packages.