Website development platform Wix is set to reduce its workforce by approximately 20%, as the company adapts to the rapidly changing technology landscape shaped by artificial intelligence.

The announcement was made by CEO Avishai Abrahami in a post shared on X, where he outlined the factors behind the decision. According to Abrahami, advances in AI are fundamentally changing how businesses are built and operated, requiring companies to rethink traditional organizational structures.

He described the current wave of AI innovation as one of the most significant shifts in the technology industry since the emergence of modern programming languages in the 1970s. Rather than simply introducing new tools, he argued that artificial intelligence is transforming decision-making processes, management structures, and day-to-day operations across companies.

As part of this transition, Wix plans to streamline its organizational structure by reducing layers of leadership and management. The company believes a leaner structure will enable faster decision-making and greater operational efficiency in an increasingly competitive technology environment.

In addition to AI-related changes, Abrahami highlighted economic factors affecting the company’s operations. He noted that the continued strengthening of the Israeli shekel against the U.S. dollar has created structural financial pressure, making it more challenging for the company to maintain its current scale of operations.

When approached for further details regarding the layoffs, Wix referred media inquiries to the CEO’s public statement.

The workforce reduction places Wix among a growing number of technology companies that have announced significant job cuts in recent years. Across the industry, many executives have pointed to artificial intelligence as a factor influencing staffing decisions, as automation and AI-powered tools increasingly handle tasks that were previously performed by human employees.

The trend reflects a broader transformation taking place throughout the tech sector. Companies are investing heavily in AI technologies while simultaneously reassessing workforce needs, organizational structures, and long-term business strategies.

While supporters argue that AI can boost productivity and innovation, concerns continue to grow about its impact on employment and the future of work. The latest announcement from Wix highlights how businesses are navigating the balance between embracing technological advancement and managing workforce changes.

As artificial intelligence continues to evolve, industry analysts expect more companies to evaluate their staffing models and operational structures, potentially leading to further shifts across the global technology sector.