By Steven Scheer
JERUSALEM, May 28 (Reuters) - Israel's Wix.com, which helps small businesses build and operate websites, is laying off 20% of its workforce, CEO Avishai Abrahami said on Thursday, citing a strong shekel versus the dollar and the rapid evolution of AI.
The shekel has appreciated nearly 30% against the dollar over the last year to reach a 33-year peak.
"As the majority of our teams are Israel-based, a very meaningful portion of our costs are shekel-denominated, while our revenue is largely dollar-denominated," Abrahami said in an X post.
"This creates a structural pressure on our ability to operate at our current scale. It is a reality that directly shapes what is sustainable for our company."
Abrahami said AI was also a major factor.
It was a positive in that it could help companies "build things the previous generation literally could not have imagined," he said, but also meant that the company needed fewer layers and fewer workers.
Wix had a headcount of 5,277 employees at the end of the first quarter and the job cuts equate to around 1,000 people.
Its Nasdaq-listed shares have slid nearly 50% so far in 2026.
Israel's Manufacturers' Association said the Wix layoffs were due in part to inaction by the government and central bank to address the stronger shekel.
"The economy's reaction to the dollar's crash is faster and more severe than we thought," it said in a statement.
"Unfortunately, in the absence of any government action, industry and high-tech will make decisions solely on an economic basis."
(Reporting by Steven Scheer; Editing by Joe Bavier and Barbara Lewis)
