Wix.com (WIX) is experiencing a turbulent start to the week. The web development platform provider revealed plans to eliminate approximately 1,000 positions — representing roughly one-fifth of its total employee base — while simultaneously reducing its financial projections for 2026. Shares tumbled over 11% in pre-market activity, sliding toward $46.30 after touching a session low of $51.33 earlier during trading.
The workforce reduction forms part of a comprehensive organizational transformation. Wix indicated it plans to reduce investment in or completely shut down specific products, projects, and subsidiary operations in an effort to optimize its business structure.
CEO Avishai Abrahami identified two primary challenges driving the decision: currency headwinds from a strengthening Israeli shekel, which inflates operational costs for its predominantly Israel-based workforce while revenues are generated in dollars, and a strategic shift toward building an AI-focused organization.
The restructuring initiative is projected to deliver approximately $70 million in non-GAAP cost reductions throughout 2026, with an ongoing annualized savings rate reaching approximately $150 million.
The company has revised its full-year bookings growth expectations downward to a low-teens percentage, retreating from its previous mid-teens projection. This adjustment represents roughly a $50 million decrease in anticipated bookings.
Revenue projections were similarly adjusted downward. The company now anticipates low- to mid-teens revenue expansion, backing away from its earlier mid-teens forecast. This revision suggests approximately $25 million less in revenue compared to original estimates.
Analyst consensus compiled by FactSet had projected full-year revenue reaching $2.28 billion, representing an increase from the prior year’s $1.99 billion — growth of slightly more than 14%.
However, not every aspect of the announcement was negative. Wix elevated its free cash flow guidance by $20 million to $420 million for the fiscal year, although this figure excludes acquisition-related and restructuring expenses.
The restructuring announcement compounds an already challenging period for WIX shareholders. The company’s Q1 2026 financial performance disappointed investors — adjusted earnings per share reached $0.68, significantly trailing the consensus forecast of $1.22, despite revenue climbing 14% year-over-year to $541.2 million.
Wix also disclosed an unexpectedly steep deceleration in its Partners business division during the latter portion of May and throughout early June, which contributed to the downward revision in guidance.
Financial analysts have responded with widespread reductions in price targets. The stock currently trades near its 52-week low, substantially below its 52-week peak of $190.93.
WIX reached a session low of $51.33 before extending declines toward $46.30 during pre-market trading activity.
Broader market conditions provided little support. At the time of the company’s announcement, the Nasdaq had declined 4.2%, the S&P 500 retreated 2.6%, and the Dow Jones Industrial Average dropped 1.4%.
The restructuring program is anticipated to produce annualized cost savings approaching $150 million following complete implementation.
Wix stated the organizational modifications are intended to reallocate resources toward its central strategic objectives moving forward.
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