Wix laying off about 20% of its workforce. CEO cites AI, exchange rates in announcing cut

Wix, the Israeli web development giant, is set to reduce its workforce by approximately 20%, as revealed by CEO Avishai Abrahami in a recent post on X. The decision is influenced by the rapid advancements in artificial intelligence and ongoing challenges related to currency exchange rates. Abrahami highlighted the unprecedented transformation occurring in the business landscape, likening it to the revolutionary changes brought about by modern programming languages in the 1970s. He emphasized that this evolution goes beyond merely adopting new technologies; it necessitates a fundamental restructuring of how companies operate, manage resources, and make decisions. In light of these changes, Wix plans to streamline its leadership structure to facilitate quicker decision-making. The CEO also pointed out that the strengthening of the Israeli shekel against the U.S. dollar has created 'structural pressure' on the company's operational capabilities, prompting the need for this significant workforce adjustment. As of now, Wix has not responded to inquiries from CNBC regarding further details about the layoffs.