Wix is laying off about 1,000 employees — roughly a fifth of its workforce — as artificial intelligence reshapes how people build websites. The Israeli company announced the cuts Wednesday, pointing to changes in the website builder industry driven by AI tools that can generate sites with minimal human input.
The size of the reduction
The layoffs affect around 20% of Wix's staff. That puts the total headcount before the cuts at roughly 5,000 people. The company did not say which departments or regions will be hit hardest, but the move signals a major restructuring.
Why AI is the culprit
Wix builds drag-and-drop website creation software, a market that has grown crowded in recent years. Now AI-powered platforms can spit out a fully designed site from a short text prompt. That threatens the demand for traditional builders, and Wix is responding by paring down its labor force. The company said the decision was not about cost-cutting alone but about adapting to a new technological reality.
What happens next
Affected employees will receive severance packages and outplacement support, Wix said, but it did not provide details. The layoffs are expected to be completed within the next few weeks. Investors will be watching for the company's next earnings report to see if the cuts help margins. For the workers leaving, the question is where they'll find jobs in an industry that's rapidly automating its own products.
