Why Wix Is Planning 1,000 Layoffs Despite Growing Revenue 14%

Website builder Wix could be cutting 1,000 jobs over the next few months, about 20% of its total staff, according to several reports. At the end of March, the company had 5,277 employees, with more than 60% working in Israel.

Even though Wix hasn’t made a public statement about the layoffs, published reports cite growing concerns over eroding profitability and what sources describe as the increasing redundancy of many roles in the AI era.

In the first three months of 2026, Wix posted a $57.5 million loss after several profitable quarters. Its revenue in the same period, however, climbed 14% to $541 million. And since January, its stock has also dropped nearly 50%.

Why is Wix losing money despite growing sales?

Wix’s operating expenses jumped 50% in the first quarter to $423 million. That now represents 35% of total revenue, up from 21% in the same period last year.

Meanwhile, Base44, an AI platform which Wix bought for $80 million in June 2025, hit $150 million in annual recurring revenue by May 2026. Under the acquisition agreement, Wix paid Base44 founder Maor Shlomo another $38 million in the first quarter alone. The company says more payments are expected later this year based on the deal's terms.

Also, cash flow dropped 21% to $112 million in the quarter.

The $1.6 billion buyback that didn't stop the slide

In March, Wix announced a $1.6 billion share buyback program meant to restore investor confidence. But its stock kept falling. Now, Wix has a market value of roughly $2 billion, with the buyback draining cash reserves to $900 million.

Reports say the current layoffs will affect all departments across the company. That marks a shift from previous job cuts during the pandemic years, which primarily targeted customer service teams after Wix adopted AI for support tasks. Workforce data showed Wix reduced headcount by only 63 employees in the first quarter of 2026.

Several months ago, Wix management required all employees to return to the office five days a week. According to Israeli tech media, that decision sparked opposition inside the company. Sources cited in the reports say Wix also announced changes to development roles around that time to adapt them to the AI era. The 1,000 job cuts represent the largest layoff round in the company's history.