Wix Cuts 1,000 Jobs as AI Reshapes Software Development
Wix is preparing to cut around 1,000 jobs in the coming months, marking the largest restructuring in the company’s history. The reductions represent nearly 20% of its global workforce, as management points to artificial intelligence taking over parts of development and design work. As AI adoption accelerates, the company says fewer human roles are needed in specific operational areas.
However, the move comes during a financially challenging period. Although revenue rose in the first quarter, profitability weakened sharply, adding pressure on leadership to reduce costs and improve efficiency.
Financial strain deepens amid AI investment
Wix reported a first-quarter net loss of $57.5 million after several profitable quarters, despite revenue increasing 14% to $541 million. Meanwhile, operating expenses surged 50% to $423 million, largely due to higher marketing costs and acquisition-related payments tied to Base44.
At the same time, the company continues investing heavily in artificial intelligence infrastructure. Base44, its natural-language coding platform, has grown rapidly and reached $150 million in annual recurring revenue ahead of expectations. However, that fast adoption has also increased computing costs significantly.
CEO Avishai Abrahami has previously warned that AI could disrupt a large share of existing jobs within the next decade.
AI-driven transformation sparks internal concerns
Wix is also building its own AI model to strengthen Harmony, its AI-powered website creation platform. Consequently, the company’s strategy increasingly centers on automation-led growth rather than workforce expansion.
Earlier this year, Wix spent $1.6 billion on a share buyback, significantly reducing cash reserves. Meanwhile, its stock has declined by roughly 50% since the start of 2026, reflecting investor concerns over the company’s direction.
The planned cuts position Wix among the first major listed software firms to directly attribute large-scale layoffs to internal AI deployment rather than wider economic conditions.
