Web development platform Wix has announced a significant restructuring, resulting in the layoff of approximately 20% of its global workforce. CEO Avishai Abrahami confirmed the decision, which impacts over 1,000 employees, citing a fundamental shift in how technology companies operate due to the rapid advancement of artificial intelligence.

In a public statement, Abrahami explained that the integration of AI is necessitating a complete overhaul of corporate structures. By reducing leadership layers, the company aims to foster a more agile environment capable of making faster decisions. Beyond the influence of AI, the CEO noted that unfavorable currency exchange rates, specifically the strengthening of the Israeli shekel against the U.S. dollar, have placed structural pressure on the company’s operational costs.

Wix is the latest in a growing list of major technology firms to implement large-scale headcount reductions. The industry has seen a consistent pattern of companies citing AI-driven automation as a primary driver for streamlining operations and prioritizing smaller, highly skilled teams. This trend has already impacted numerous industry giants, including Meta, Cisco, and Block, all of which have recently initiated significant workforce adjustments to remain competitive in an evolving market.