Wix.com Lowers Outlook, Cuts 20% of Staff Amid Restructuring
WIX is trading near its 52-week low of $47.5 (1.0% above the low) on light trading volume (0.3× avg).
Summary
Wix.com announced a significant organizational realignment, including a 20% workforce reduction of approximately 1,000 employees. This restructuring is expected to reduce 2026 bookings by $50 million and revenue by $25 million, leading the company to lower its full-year bookings growth expectations to the low-teens and revenue growth to low- to mid-teens. This follows the company's May 28th announcement of a workforce reduction and adds concrete financial guidance revisions. While the company now expects 2026 free cash flow to be $20 million higher at $420 million (excluding restructuring costs), the lowered revenue outlook indicates a material negative impact on near-term financial performance.
At the time of this announcement, WIX was trading at $47.99 on NASDAQ in the Technology sector, with a market capitalization of approximately $2.6B. The 52-week trading range was $47.50 to $190.93. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.