Vickers CEO Avishai Abrahami announced a major restructuring, including approximately 20% layoffs. In a memo sent to the entire team, Abrahami explained that the decision was driven by two main factors: the unfavorable shekel-to-dollar exchange rate that affected costs in Israel, and the rapid development of artificial intelligence capabilities.
He claimed the company is moving to a “flatter, leaner organization” to speed up decision-making and remain competitive in AI-native technologies.
Read the full memo here:
Here’s the message I just sent to the entire Wix team:
Today is a sad day for me. We have made a very difficult decision.
We reduced the size of the Wix team by about 20%. This was one of the hardest decisions I’ve ever had to make, but I believe it was the right one and I’ll explain why.
Before I start talking about other things, let me say this – this is a very difficult decision because I’m saying goodbye to a lot of people I’ve worked with over the years, many of whom I call friends, people who I trust and respect, and who have poured their energy and talent into Wix. Team members that I know personally, and team members that I never had the opportunity to meet, but whose commitment and contribution I witnessed.
So thank you. Thank you for your hard work, talent, enthusiasm and friendship.
We are doing this as a company-wide change, a decision that will impact the entire organization and be driven by how we operate in the future.
Why do we do this?
The first reason is the shekel/dollar exchange rate. The exchange rate between the shekel and the U.S. dollar has changed significantly over the past few quarters, with the Israeli shekel strengthening against the U.S. dollar almost daily. Since the majority of our team is located in Israel, a significant portion of our costs are denominated in shekels, while our revenues are primarily denominated in U.S. dollars. This creates structural pressure on our operating capabilities at our current scale. This reality directly determines the sustainable development of our company.
The second one stems from rapid development AI ability. We’re witnessing the most significant shift in the way companies are built since the invention of modern programming languages in the 1970s. It’s not just about adopting new tools, it’s about reimagining how companies are built, how they think, how they are managed and how they operate. Companies that embrace this change will not only build faster, they will grow faster. They will build things that a generation ago could not have imagined.
We have already taken concrete steps in this direction. As you know, we recently introduced new roles like Xengineers and Creators, which are designed from the ground up around AI-native ways of working, which is a meaningful step toward the company we are becoming.
It also means we need to become a faster, leaner, flatter organization. We are moving to a structure with fewer levels between leadership members and the lowest-level people on the team. Fewer layers means faster decisions, clearer ownership, and less distance between the people setting the direction and the people building the product, but it also means fewer people.
It’s clear to us that in this new era, businesses need to make this change to lead and compete, or risk falling behind.
We choose to compete.
This is a painful change, one that touches many lives, but I firmly believe we have no choice – we must evolve.
To those who were let go
I want to say again: thank you.
We will contact those affected directly and personally, we will make every effort to handle every conversation with sensitivity, respect and the care you deserve, and you will also receive a personally curated exit package.
Many of you have dedicated years of hard work to this company and created something that we are truly proud of. I am personally very grateful for everything you have created, the culture you have shaped and the trust you have placed in us. Most importantly, this decision is about the kind of company we need to become. We own this, and we have a responsibility to support you all in what comes next.
To those of you who stay
What happens in the next few days is important. The people leaving this company are your colleagues, your friends, the people you built things with. They should walk out of here with their heads held high, knowing that their work is real and we recognize it. Please treat them with the respect they deserve. The way we say goodbye reflects not only who we are, but everything we have built together.
Our wider commitment
First and foremost, our commitment to our users is to make the tough decisions so that Wix continues to be the company that helps them succeed. We work for our users.
millions people Run their business on Wix. Their world is also changing, uncertain and affected by current changes. They trust us – our reliability, our innovation and our commitment to their success.
We are users and have responsibilities – behind every Wix shareholder there is a real person whose savings, pension or investment is tied to our performance. We take this responsibility very seriously.
If we do not make this change, we will not be fulfilling our responsibilities to our users, shareholders and employees. In the long run, what’s best for our users is what’s best for our employees and what’s best for our shareholders.
Today’s decision is designed to ensure we provide a stronger, more capable service to our users and shareholders, including you, in the years to come. We do this today because we are committed to building a healthy, durable and leading company.
We will emerge from this new era faster, stronger and better.
Avishai
