Wix is laying off 20% of staff. Read the memo — and yes, it mentions AI.

Wix, the well-known website-building platform, is set to reduce its workforce by approximately 20%. In a message shared with employees, CEO Avishai Abrahami highlighted the rapid advancements in artificial intelligence as a key factor driving this decision. He emphasized the need for the company to become 'faster, leaner, and flatter' to adapt to these changes. Based in Israel, Wix currently employs just under 5,300 individuals, which means nearly 1,000 positions will be eliminated as part of this restructuring. Abrahami also noted that the strengthening of the Israeli shekel against the US dollar has created additional operational challenges for the company. Wix's decision follows a trend seen across the tech industry, with companies like Snap, Block, and Atlassian also citing AI advancements as reasons for their layoffs this year. As pointed out by Business Insider, the phrasing in these announcements often echoes similar sentiments among executives. Moreover, Wix faces significant competition from emerging platforms, particularly in the context of the so-called 'SaaSpocalypse,' where AI technologies threaten to replicate services offered by established software firms. Despite Wix's efforts to integrate AI features to stay competitive, including competing against platforms like Lovable, the company's stock has declined by 23% since the beginning of the year. The full memo detailing the layoffs has been made available to staff, outlining the company's future direction amidst these challenges.