Wix lays off 100 – Globes

Israeli website building platform Wix.com Ltd. (Nasdaq: WIX) is laying off 100 employees, most of them abroad, sources inform “Globes.” At the end of 2021, Wix had 5,929 employees, with nearly 3,000 of them in Israel. The company declined to respond on the matter.

Wix, which allows customers to build and manage websites, will publish its second quarter financial results tomorrow and analysts forecast a non-GAAP net loss earnings per share of $0.42. The company itself has forecast revenue of $342-346 million, 8%-10% higher than the corresponding quarter of 2021.

Wix, cofounded and managed by CEO Avishai Abrahami, is traded on Nasdaq with a market cap of $4.2 billion, down from nearly $20 billion in early 2021, when the company benefitted from the Covid pandemic and the shift to digital services. But the company’s share price and financial performance have been hit by the return to normality and the uncertain macroeconomic environment.

In its first quarter results, Wix reported that the board of directors had adopted a plan to bring free cash flow to 20% of revenue by 2025, compared with negative cash flow of $33.6 million in the first quarter. The company did not detail how it would reach this target, and senior executives even said that there would not be any layoffs and the company would continue hiring new employees this year, although at a significantly lower rate than in previous years. In 2021, the work force grew by 28%.

Published by Globes, Israel business news – en.globes.co.il – on August 9 2022.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.

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