AI pushes Elementor to lay off 100

After Wix.com Ltd. (Nasdaq: WIX), another Israeli company in the field of website building is making cuts: Elementor announced this morning to employees that 30% of them will be summoned to a hearing prior to being dismissed. In total 100 employees are being laid off.

Elementor cofounder and CEO Yoni Luksenberg said, “Over the past decade, we have proudly led the web creator revolution. In recent years, we have dared to break into new growth directions but we underestimated the speed of technological disruption and its impact on the old model. Elementor is a healthy, profitable and independent company, and from this position we have chosen to do a reset: a lean, flat and agile organization, focused on our core product and community. This is a very painful step, and I am grateful to everyone who has built Elementor with us so far. The change is essential to ensure that Elementor remains independent and strong and leads the next chapter of the web.”

A market undergoing upheaval following the launch of AI tools

Elementor operates in the crowded market of website and mobile development, and already implemented one round of layoffs about four years ago at the height of the post-Covid interest rate crisis. However, it has never raised hundreds of millions of dollars at a high valuation, so until now it has been running lean operations while relying on revenue. According to PitchBook, it has raised only $66 million from investors including Lightspeed and Eyal Ofer’s O.G. Venture Partners.

Like Wix, which was forced to lay off about 1,000 employees last month, Elementor is also active in the online website development market, which is undergoing a shake-up following the launch of AI tools such as Claude Code and Cursor. While Wix developed a complete and closed system for website development, Elementor specializes in developing a plugin for the open website creation system WordPress and offers complementary products for website developers, such as hosting or WordPress installation services.

According to its announcement, the company will undergo a “reset” process aimed at preparing for the next generation of website creation in the AI era. Elementor currently operates over 25 million websites and is installed on some 13% of the world’s websites. The company, which has been profitable and stable for years, recognizes a rapid and fundamental change in the way websites are built and consumed – a world in which, alongside people, AI agents also become builders, surfers, and key users. In such a world, the website itself is changing: from an interface that a person surfs, to an interface that a smart agent also works with.

To lead this next chapter from a position of strength, and not wait for the moment when it will be forced to do so, the company’s founders decided to return to their roots – an independent, focused, and agile organization that grows by virtue of its revenue and not from external growth budgets. As part of the process, Elementor will move to a flat organizational structure, with a reduction in management layers. As a result, the workforce will be cut by 30%.

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Elementor says it is committed to supporting those leaving and will express appreciation for their contribution, through an expanded support package and favorable retirement conditions beyond what is required by law.

Published by Globes, Israel business news – en.globes.co.il – on June 29, 2026.

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