Wix.com Ltd. (NASDAQ: WIX) announced a reduction of approximately 1,000 employees, representing about 20% of its workforce, as part of an organizational realignment communicated on May 28, 2026.

The company said it is scaling down or discontinuing certain activities, initiatives, products, and subsidiaries to streamline operations and reallocate resources to strategic priorities. The restructuring includes approximately $30-35 million in pre-tax charges, primarily for severance and related benefit costs.

Wix revised its fiscal year 2026 outlook, lowering bookings growth expectations from mid-teens percentage to low-teens percentage and revenue growth from mid-teens percentage to low- to mid-teens percentage. The company expects approximately $50 million reduction in bookings and $25 million reduction in revenue for fiscal 2026.

The reduced performance stems from the organizational changes and a slowdown in the Partners business during late May and early June that exceeded previous expectations. Wix Harmony and Base44 continue performing as expected when guidance was issued during the first quarter earnings release.

The company expects the realignment to generate approximately $70 million in non-GAAP cost savings this year, with a full-year run rate of approximately $150 million driven by lower payroll and overhead expenses. Free cash flow excluding acquisition and restructuring costs is projected at approximately $420 million, an increase of $20 million from prior plans.

Most restructuring charges will be incurred in the second quarter of 2026, with cash payments expected in the second half of the year. The company maintains its free cash flow margin guidance in the high-teens percentage range.