Website builder Wix announced an "organizational realignment" on Monday that will cut roughly 20% of its workforce, as the company warned of a sharper-than-expected slowdown in its Partners business.
The restructuring is designed to streamline operations, discontinue lower-priority initiatives, and reallocate resources toward Wix's core growth areas.
"The organizational realignment to streamline operations and reallocate resources to support the Company's top strategic priorities. This includes the scaling down and/or discontinuation of certain activities, initiatives, products, and subsidiaries," Wix wrote in a Form 6k filing earlier this morning.
As of 1Q26, Wix had 5,277 employees, so a 20% cut would represent about 1,055 layoffs.
Wix is a SaaS website builder that competes with platforms such as Shopify, Squarespace, GoDaddy, and WordPress-related services. There was no mention of whether AI-related efficiencies contributed to the white-collar layoffs.
The 6k filing noted that it expects 2026 free cash flow, excluding acquisition and restructuring costs, of about $420 million, roughly $20 million above its prior plan. This restructuring is a move to support profitability.
"While Wix Harmony and Base44 continue to perform as we expected when we issued guidance as part of the first quarter 2026 earnings release, the Company expects an approximately $50 million reduction in bookings and an approximately $25 million reduction in revenue in FY 2026 as a result of our organizational realignment as well as a more pronounced slowdown, beyond our previous expectations, in the growth of our Partners business during the second half of May and early June," the filing stated.
The company lowered its 2026 bookings growth outlook to the low-teens range from mid-teens, while revenue growth is now expected in the low- to mid-teens range, also down from mid-teens.
Cost savings from the labor restructuring are expected to offset the revenue hit. Wix sees about $70 million in incremental non-GAAP cost-of-revenue and operating-expense savings this year, with a full-year run-rate savings target of about $150 million, driven mainly by lower payroll and overhead.
Wix expects $30 million to $35 million in pre-tax restructuring charges, mostly related to cash severance and benefits, with most charges booked in the second quarter and cash payments made later this year.
Shares of Wix tumbled 10% in premarket trading. The stock is trading near 2017 lows.
Most Wall Street analysts are bullish on the stock. There are 12 "Buy" ratings, 8 "Neutral" ratings, and 1 "Sell."
The average 12-month price target for the stock is $84 per share.