Wix Cuts 20% Workforce and Lowers 2026 Revenue Guidance by $25M
WIX•Wix.com cut its workforce by 20%, slashed FY2026 revenue guidance by $25 million and bookings by $50 million, and shares fell to their lowest level since January 2017. It expects $420 million in free cash flow, up $20 million, while incurring $30–35 million in restructuring charges.
1. Stock Decline and Guidance Cuts
Shares of Wix.com dropped over 6% to their lowest level since January 2017 after the company reduced its FY2026 revenue outlook by $25 million and trimmed bookings by $50 million. Management also revised year-over-year bookings growth to the low-teens from mid-teens and revenue growth to low- to mid-teens.
2. Free Cash Flow Outlook
Wix.com now projects FY2026 free cash flow of approximately $420 million, a $20 million increase over prior guidance. This improvement is driven by $70 million in non-GAAP cost of revenue and operating expense savings this year, contributing to a full-year run-rate of about $150 million in savings.
3. Workforce Reduction and Charges
The company announced a 20% reduction in headcount, impacting around 1,000 employees, to refocus on artificial intelligence initiatives and offset currency pressures. Pre-tax restructuring charges of $30–35 million, primarily severance and benefit costs, are expected to hit in the second quarter.
