Wix Plans 1,000 Layoffs Amid Growing Shift Toward AI-Driven Operations

Reportedly, one-fifth of Wix's worldwide workforce—about 1,000 jobs—is set to be laid off. This can be considered one of the most significant restructuring initiatives in the organisation's history. Layoffs are taking place as a result of the growing impact of AI on company's operations. The website-building company's management informed their employees that some development and design tasks were now easier to do with the help of AI.

According to reports, almost 20% of Wix's employees would be let go. More than 60% of the 5,277 employees were located in Israel prior to the layoffs. This is just the latest example of how AI-driven restructuring is being used by tech companies like Wix to rationalise layoffs. Companies are laying off workers in an effort to save money and speed up their investments in automation and artificial intelligence tools that generate new data.

Wix Going for a Roller-Coaster Ride in Business

Cuts are being made despite an increase in revenue. Despite a 14% increase to $541 million, Wix's net loss for the quarter was $57.5 million, sending the company back into the red. A decline of 21% to $112 million was the cash flow. Expenses for operations increased by 50% to $423 million, or 35% of revenue, up from 21% the previous year. Previous actions now appear to have been red flags. Despite the obvious resistance from employees when Wix mandated full-time office attendance a few months ago, the company cut 63 positions in the first quarter.

The company's valuation dropped to around $2 billion after a $1.6 billion buyback in March reduced cash reserves to $900 million without raising the shares. To fortify its generative AI and site creation skills, the business spent $80 million acquiring Israeli AI startup Base44 and startup Hour One in the last year.  Base44's "vibe-coding" platform has become an integral part of Wix's growth plan in the long run, as it now generates roughly $150 million in recurring income per year.

IT Layoffs Gaining More Predominant

The tech industry as a whole is undergoing widespread restructuring, which includes the layoffs. Artificial intelligence (AI), automation, and machine learning are currently receiving a larger share of corporations' spending. More than 100,000 jobs have been lost in the IT sector worldwide so far this year, according to figures compiled by Statista. This means that the number of layoffs in 2026 will be higher than in either 2024 or 2025.

Amazon, Meta, Microsoft, Oracle, Cisco, and Cloudflare are among the big IT companies that have decreased their staff while expanding spending in artificial intelligence goods and services. The continuous solid financial results reported by several of these companies show that investors remain optimistic about the development potential generated by AI.

In contrast to some of its bigger IT competitors, Intuit has failed to impress investors as a company that stands to gain from the AI boom. The organisation is facing a dynamic and ever-changing business landscape as AI tools revolutionise software development, delivery, and usage for both enterprises and consumers.