Wix stated that it has reduced its revenue expectations by $25 million and expects about a $50 million reduction in bookings for 2026.
- The company now expects FY2026 free cash flow, excluding acquisition and restructuring costs, to reach roughly $420 million, marking an increase of $20 million.
- On May 28, Avishai Abrahami, Chief Executive Officer at Wix.com, posted on X that the company would reduce its workforce by 20%.
- The company expects to incur about $30 million to $35 million in pre-tax restructuring charges.
Shares of Wix.com (WIX) dropped over 6% on Monday to its lowest levels since January 2017, after the website-building platform slashed its 2026 revenue projections due to the organizational restructuring and slowing growth in its Partners business during the second half of May and early June.
In an SEC filing, Wix stated that it has reduced its revenue expectations by $25 million and expects about a $50 million reduction in bookings for 2026, even though its Wix Harmony and Base44 initiatives continued to perform as expected when the company issued its guidance in the first-quarter earnings report.
The firm now expects FY2026 free cash flow, excluding acquisition and restructuring costs, to reach approximately $420 million, a roughly $20 million increase over its prior plan.
The boost comes from approximately $70 million in total non-GAAP cost of revenue and operating expense savings this year, incremental to previous guidance, with a full-year run-rate of about $150 million aided by ‘meaningfully’ lower payroll and overhead expenses in its go-forward cost structure, according to Wix.
WIX Cuts 1000 Jobs
On May 28, Avishai Abrahami, Chief Executive Officer at Wix.com, stated in a post on X that the company would reduce its workforce by 20%.
The layoff of 20% of the workforce, or 1,000 employees, was mainly due to the need to restructure around artificial intelligence and the appreciation of the Israeli shekel against the U.S. dollar, which has increased shekel-based costs relative to its dollar-denominated revenue.
The company expects to incur about $30 million to $35 million in pre-tax restructuring charges, with the majority being cash expenditures for severance and related benefit costs. Most of these charges will hit in the second quarter of 2026, the company noted.
WIX Trims 2026 Guidance
The company now expects FY2026 year-over-year bookings growth to be in the ‘low-teens’ percentage from ‘mid-teens,’ while year-over-year and second quarter revenue growth was adjusted to ‘low- to mid-teens’ percentage from mid-teens.’
Wix maintained its free cash flow (excluding acquisition and restructuring costs) margin at a high-teens level for 2026.
What Retail Thinks Of WIX
On Stocktwits, retail sentiment surrounding the stock has remained ‘neutral’ while message volumes increased to ‘high’ from ‘low’ in the past 24 hours.
One user on Stocktwits said that the company highlighted cost savings from the job cuts, but the market is more focused on growth deceleration in a more mature SaaS business.
WIX stock has declined by more than 51% so far this year.
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