Wix is reportedly preparing to cut around 1,000 jobs globally, nearly one-fifth of its workforce, as the website-building company restructures operations around artificial intelligence (AI) and accelerates investments in AI-driven technologies.
According to media reports, company management informed employees that advances in AI tools have reduced the need for certain roles across development and design functions. If implemented, the layoffs would represent one of the largest workforce-restructuring exercises in the company’s history.
The planned reductions could affect around 20 per cent of Wix’s workforce. The company employed more than 5,200 people globally before the reported move, with a significant portion of employees based in Israel. The development places Wix among a growing number of technology companies reorganising workforce structures as AI adoption expands.
The reported job cuts come as AI becomes increasingly central to the company’s business strategy. Over the past year, Wix strengthened its AI capabilities through acquisitions and investments aimed at expanding automation and generative AI offerings. The company has increasingly integrated AI features into its website-building ecosystem to automate design functions, content creation and user interactions.
However, the technologies supporting product expansion are also beginning to influence workforce decisions internally. Companies across the technology sector are increasingly examining how AI tools can reshape workflows and reduce dependence on traditional organisational structures.
The restructuring also follows a financially challenging period for the company. Despite reporting double-digit revenue growth, Wix recently posted quarterly losses while managing rising costs associated with infrastructure and AI-related investments. Growing spending on computing power and technology development has added pressure on operational efficiency.
The development reflects a broader trend across the technology industry, where firms are balancing aggressive AI investments with cost pressures and investor expectations. Several companies have introduced leaner workforce models and flatter organisational structures while shifting resources toward AI-focused initiatives.
At the same time, debate continues around the long-term impact of AI on jobs, with businesses still assessing how effectively automation can replace human expertise across creative and technical roles.
