Wix cuts 1,000 jobs as AI takes over more work inside the company
Website builder Wix is reportedly laying off around 1,000 employees, with management pointing to AI tools reducing the need for human roles in development and design teams.
Wix, the company known for its do-it-yourself website building platform, is reportedly preparing for one of the biggest restructuring drives in its history. According to reports, the company plans to cut around 1,000 employees, roughly 20 percent of its global workforce, over the coming months. Before the layoffs, Wix employed 5,277 people worldwide, with more than 60 percent of them based in Israel.
What made the reported layoffs stand out was the reason reportedly given by management: AI tools.
According to a report by The Times of Israel citing Hebrew press, Wix management told employees that human staff in development and design roles are no longer needed at the same scale because of advancements in artificial intelligence.
AI is becoming central to Wix’s future
The reported cuts come at a time when Wix is investing heavily in AI-powered products and tools. Over the past year, the company acquired Israeli AI startup Base44 for $80 million and also bought startup Hour One to strengthen its web creation and generative AI video capabilities.
Base44, which focuses on “vibe-coding” tools, is now reportedly generating $150 million in annual recurring revenue, signaling how important AI products have become to Wix’s future plans. Ironically, the same AI capabilities now driving Wix’s product roadmap are also being linked to the company’s workforce reductions.
Financial pressure added to the problem
The layoffs also come after Wix posted a first-quarter loss of $57.5 million, despite reporting 14 percent revenue growth to $541 million. The company’s financial pressure was reportedly driven by a massive $1.7 billion share buyback programme and rising compute costs linked to AI infrastructure.
As tech companies race to build and integrate AI systems, many are also facing growing pressure to reduce costs and eliminate what they see as redundant roles.
AI layoffs are spreading across tech
Wix is far from alone.
Across the tech industry, companies are increasingly pointing to AI while announcing workforce reductions. Meta recently began another round of layoffs expected to affect around 10 percent of its global workforce, roughly 8,000 employees.
But the growing wave of AI-linked layoffs has also sparked debate over whether artificial intelligence is truly replacing workers at the scale companies claim. OpenAI CEO Sam Altman recently suggested that some firms may be using AI as a justification for layoffs that would have happened anyway.
Adding to the uncertainty, an MIT study released last year found that 95 percent of corporate AI investments had generated “zero return” so far.
Companies may still need humans again
Even as companies automate jobs, the story may not end there.
A 2025 survey by consulting firm Robert Half found that 29 percent of 2,000 hiring managers said they later reopened positions that had previously been eliminated after AI systems were introduced. That suggests some businesses may be discovering that AI cannot fully replace human workers as quickly or as cheaply as expected.
Wix, the company known for its do-it-yourself website building platform, is reportedly preparing for one of the biggest restructuring drives in its history. According to reports, the company plans to cut around 1,000 employees, roughly 20 percent of its global workforce, over the coming months. Before the layoffs, Wix employed 5,277 people worldwide, with more than 60 percent of them based in Israel.
What made the reported layoffs stand out was the reason reportedly given by management: AI tools.
According to a report by The Times of Israel citing Hebrew press, Wix management told employees that human staff in development and design roles are no longer needed at the same scale because of advancements in artificial intelligence.
AI is becoming central to Wix’s future
The reported cuts come at a time when Wix is investing heavily in AI-powered products and tools. Over the past year, the company acquired Israeli AI startup Base44 for $80 million and also bought startup Hour One to strengthen its web creation and generative AI video capabilities.
Base44, which focuses on “vibe-coding” tools, is now reportedly generating $150 million in annual recurring revenue, signaling how important AI products have become to Wix’s future plans. Ironically, the same AI capabilities now driving Wix’s product roadmap are also being linked to the company’s workforce reductions.
Financial pressure added to the problem
The layoffs also come after Wix posted a first-quarter loss of $57.5 million, despite reporting 14 percent revenue growth to $541 million. The company’s financial pressure was reportedly driven by a massive $1.7 billion share buyback programme and rising compute costs linked to AI infrastructure.
As tech companies race to build and integrate AI systems, many are also facing growing pressure to reduce costs and eliminate what they see as redundant roles.
AI layoffs are spreading across tech
Wix is far from alone.
Across the tech industry, companies are increasingly pointing to AI while announcing workforce reductions. Meta recently began another round of layoffs expected to affect around 10 percent of its global workforce, roughly 8,000 employees.
But the growing wave of AI-linked layoffs has also sparked debate over whether artificial intelligence is truly replacing workers at the scale companies claim. OpenAI CEO Sam Altman recently suggested that some firms may be using AI as a justification for layoffs that would have happened anyway.
Adding to the uncertainty, an MIT study released last year found that 95 percent of corporate AI investments had generated “zero return” so far.
Companies may still need humans again
Even as companies automate jobs, the story may not end there.
A 2025 survey by consulting firm Robert Half found that 29 percent of 2,000 hiring managers said they later reopened positions that had previously been eliminated after AI systems were introduced. That suggests some businesses may be discovering that AI cannot fully replace human workers as quickly or as cheaply as expected.
