Wix.com (WIX) shares are in focus on May 28 after the company announced plans of lowering its headcount by 20% — a move expected to affect about 1,000 of its employees.
These job cuts — the largest in WIX’s history — are driven by a currency mismatch, making its Israeli workforce more expensive in dollar terms and a fundamental shift in how software firms need to operate in the age of AI.
At the time of writing, WIX stock is down more than 45% versus the start of this year.
Significance of Layoffs for Wix Stock
At first glance, layoffs affecting 20% of the workforce sound alarming, but for those invested in WIX shares, the math actually tells a different story.
In 2026, the company faces a $64 million FX headwind due to strength in the Israeli shekel, a structural drag that reducing headcount addresses directly.
The shekel gained 14% against the dollar last year and has added another 7% through the first five months of 2026, meaning the cost base relief from these job cuts is both immediate and meaningful.
WIX’s free cash flow, excluding acquisition costs, stood at $112 million in the first quarter, about 21% of its revenue, a solid foundation that a leaner cost structure should help stabilize and grow.
What Else Makes WIX Shares Worth Owning
The deeper bull case for WIX stock rests on the company’s fundamentals and its strategic pivot; in Q1, bookings were up 15%, and total consolidated ARR surpassed $1.9 billion.
Meanwhile, Base44, an artificial intelligence (AI) platform that WIX acquired last year, has already hit $150 million in annual recurring revenue, demonstrating rapid monetization.
Reiterated outlook for mid-teens growth in 2026 bookings and revenue makes it even more exciting as a long-term holding.
Note that WIX has recently completed a $1.6 billion modified Dutch auction as well, which retired nearly 30% of its shares, representing significant capital return to shareholders.
Wall Street Remains Bullish on Wix.com
What’s also worth mentioning is that Wall Street analysts remain strongly bullish on WIX shares for the next 12 months.
The consensus rating on Wix.com sits at “Moderate Buy” with the mean price target of roughly $91, indicating potential upside of more than 45% from here.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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