AI Layoffs Strike Again, As Company Dumps 1,000 Workers

Wix laid off 1,000 people, citing the fast evolution of AI capabilities as the primary reason, with currency exchange rates listed as another factor. The company had 5,200 workers before the cuts. Wix operates as a development platform company, a sector facing pressure as AI software is believed to handle much of the work that drives revenue. Wix’s recent financial results were weak, leading RBC Capital Markets and Wells Fargo to downgrade the stock. Wells Fargo reduced its price target from $137 to $54. Shares fell sharply, with declines of 49% year-to-date and 69% over the last year. In the most recent quarter, revenue rose 14% to $541 million, while the company reported a $57 million loss versus a $34 million profit a year earlier.

"Wix (NASDAQ: WIX), a dog of a company, laid off 1,000 people and said the primary reason was "fast evolution of AI capabilities." Currency exchange rates were given as another reason Wix is doing poorly enough that it may have had to make the cuts anyway. It had 5,200 workers before the cuts."

"Wix was on the ropes based on its last financial results. RBC Capital Markets and Wells Fargo both downgraded the stock following the recent earnings report. Wells Fargo slashed its price target from $137 to $54, The market has given up on Wix's stock recently. Shares are down 49% this year compared to an advance of 12% by the S&P 500. It has dropped 69% over the last year."

"In the most recent quarter, Wix revenue rose only 14% to $541 million. The company lost $57 million compared to a net profit of $34 million in the same quarter a year ago. Each number was considered a disappointment. Wix management said, "As such, we are maintaining our previous full year 2026 outlook and continue to expect both bookings and revenue to grow at mid-teens percentage on a year-over-year basis." The year had gotten off to a slow start, management added."

"Among companies with beaten-down businesses, the question is whether AI is the cause of job cuts rather than other problems, such as challenges in their business sectors or bad management. No matter the reason for the job cuts, given recent earnings and Wall St. downgrades, Wix's future is in jeopardy."

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