Shares of Wix.com slid another 6.4% in pre-market Tuesday to $49.08, erasing a modest rebound and underscoring that Wall Street sees the Israeli website builder's problems as structural, not cyclical. The stock has fallen 56% in the first half of 2026 , and the latest leg down shows investors are still digesting a one-two punch: a sweeping workforce cut and a lowered growth outlook that arrived within two weeks of each other.
A Thousand Jobs Gone, and the Savings May Not Be Enough
Wix is cutting roughly 1,000 jobs — about 20% of its workforce — in the largest layoff in company history.
The company estimates the layoffs will save about $70 million this year, with annualized savings expected to reach about $150 million. But those savings are offset by a one-time severance bill of $30–35 million and a guidance cut that shaved roughly $50 million off expected bookings and about $25 million off revenue for the full year.
The Partners Business Is Cracking
At the center of the warning is Wix's partners business — the community of web designers and agencies that resell the platform — which accounts for about 38% of revenue.
Wix flagged a sharper-than-expected slowdown in that segment during late May and early June , a troubling signal because it suggests the very professionals Wix depends on for growth are migrating to rival AI tools.
A $1.6 Billion Buyback That Backfired
In April, Wix completed a $1.617 billion modified Dutch auction tender offer, retiring approximately 17.6 million shares at $92 per share — nearly double today's price. The company is already recording a paper loss of about $850 million on that move.
The buyback left Wix with close to $1 billion in net debt , tightening its financial cushion just as it needs to invest heavily in AI.
AI Is Both the Cure and the Disease
Operating margins collapsed from 21% to 5% in a single quarter, and earnings per share missed by roughly 45%.
AI is commoditizing the low-cost website funnel that built Wix — a $20/month AI subscription can now generate custom websites , pressuring Wix's own pricing power. The company is betting its acquisition of an AI code-generation tool can reverse the tide, but some of that product's customers also build websites, potentially cannibalizing Wix's core offering.
With a market cap hovering near $2 billion — down from $20 billion at its 2021 peak — Wix is guiding for $420 million in free cash flow this year. The math looks cheap. The question is whether the business underneath it is shrinking faster than the cost cuts can compensate.