TLDR
- Wix is cutting around 1,000 jobs — about 20% of its total workforce — as part of a company restructuring.
- The company lowered its full-year 2026 bookings growth outlook from mid-teens to low-teens percentage.
- Revenue growth guidance was also trimmed to low- to mid-teens, implying roughly $25 million less in revenue.
- WIX stock dropped over 11% in pre-market trading, hitting a session low near $46.30.
- Free cash flow guidance was raised by $20 million to $420 million, excluding restructuring costs.
Wix.com (WIX) is having a rough Monday. The company announced it is cutting roughly 1,000 employees — about 20% of its workforce — and lowered its financial outlook for 2026. The stock fell more than 11% in pre-market trading, dropping toward $46.30 and touching a session low of $51.33 earlier in the day.
The cuts are part of a broader organizational realignment. Wix said it will scale down or fully discontinue certain products, initiatives, and subsidiaries as it looks to streamline how it operates.
CEO Avishai Abrahami has pointed to two key pressures: a stronger Israeli shekel, which raises the cost of its largely Israel-based workforce against dollar-denominated revenues, and a push toward AI-native staffing.
The restructuring is expected to save around $70 million in non-GAAP costs in 2026, with an annualized run rate of about $150 million.
The company now sees full-year bookings growing at a low-teens rate, down from the prior mid-teens forecast. That’s roughly a $50 million reduction in expected bookings.
Revenue guidance was also cut. Wix now expects low- to mid-teens revenue growth, down from mid-teens. That translates to about $25 million less in revenue than previously projected.
Analysts polled by FactSet had expected full-year revenue of $2.28 billion, up from $1.99 billion a year ago — a rise of just over 14%.
Not all the news was bad. Wix raised its free cash flow projection by $20 million to $420 million for the year, though that figure excludes acquisition and restructuring costs.
What Triggered the Sell-Off
The announcement adds to an already difficult stretch for WIX. The company’s Q1 2026 results were a miss — adjusted EPS came in at $0.68, well below the consensus estimate of $1.22, even as revenue grew 14% year-over-year to $541.2 million.
Wix also flagged a sharper-than-expected slowdown in its Partners business segment during late May and early June, which factored into the revised outlook.
Analysts have responded with broad price target cuts. The stock is now trading near its 52-week low, a long way from its 52-week high of $190.93.
Where the Stock Stands Now
WIX hit a session low of $51.33 before extending those losses toward $46.30 in pre-market trading.
The broader market wasn’t helping either. At the time of the announcement, the Nasdaq was down 4.2%, the S&P 500 fell 2.6%, and the Dow dropped 1.4%.
The restructuring is expected to generate annualized savings of around $150 million once fully implemented.
Wix said the organizational changes are designed to refocus resources on its core strategic priorities going forward.
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