Wix CEO blames strong shekel for layoffs

Wix CEO Avishai Abrahami wrote to the company’s employees today, “Today is a sad day for me. We have made a very hard decision. We are reducing the Wix team size by roughly 20%.” Thus Abrahami confirmed “Globes” exclusive report at the start of this week that Wix is laying off 800-1,000 employees.

In his message, Abrahami explained the reasons for the drastic cuts, which are the biggest in the company’s history. He wrote, “A very meaningful portion of our costs are shekel-denominated, while our revenue is largely dollar-denominated,” and that this created “structural pressure” on the company’s operations.

At the same time, Abrahami claimed that the rapid development of AI is fundamentally changing the way tech companies are built and run, and therefore Wix needs to become a “faster, leaner, and flatter organization,” to remain competitive in the new era.

“One of the hardest decisions”

Abrahami also wrote to employees that this was “one of the hardest decisions” he had made, because it included parting ways with employees who had been with the company for years, including those he defined as friends and people he “trusted and respected.”

Abrahami thanked the employees for their “effort, talent, passion, and friendship,” and stressed that this was a company-wide move that would affect the entire organization, as part of how Wix should operate “going forward.”

He promised that anyone affected by the move would be contacted in person, and the company would try to manage the process “with sensitivity, respect, and care,” along with personalized, curated separation packages.

Adapting to the AI era

Later in the letter, Abrahami expanded on the impact of AI on the tech industry, claiming that this is the biggest change in the way companies are built since the 1970s. According to him, the change is not limited to adopting new tools, but to “rewiring” the way companies think, manage and operate. He noted that companies that embrace the change will not only build faster but will be able to create products and things that previously could not be imagined..

Abrahami added that Wix has already begun to make adjustments to the new era, including by creating new roles such as Xengineer and Creators, which are built around AI-based work models.

At the same time, he said, the company is moving to an organizational structure with fewer management layers and less layers between management and employees. “Fewer layers means faster decisions, clearer ownership, and less distance between the people setting direction and the people building the product – but it also means a smaller number of people.”

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Towards the end of the letter, Abrahami wrote that in his opinion this was a necessary step to maintain Wix’s competitiveness in the coming years. “We choose to compete,” he wrote to the employees, adding that the company’s responsibility is not only to its employees but also to its users and shareholders. According to him, millions of businesses rely on Wix, and behind each shareholder are also the savings and pensions of private individuals. “If we do not make this change, we will be failing in our responsibility,” he wrote.

Published by Globes, Israel business news – en.globes.co.il – on May 28, 2026.

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