Wix to Cut 20% of Workforce While Raising 2026 Free Cash Flow Outlook to $420M

Wix announced an organizational realignment on Monday that will cut roughly 20% of its workforce. The company filed a Form 6-K earlier on June 8, 2026, detailing the changes. As of the first quarter of 2026, Wix had 5,277 employees, so the planned reduction represents about 1,055 layoffs.

The restructuring is intended to streamline operations, discontinue lower-priority initiatives, and reallocate resources toward the company's core growth areas. Wix warned of a sharper-than-expected slowdown in its Partners business. The filing stated that while Wix Harmony and Base44 continue to perform as expected, the company now anticipates an approximately $50 million reduction in bookings and an approximately $25 million reduction in revenue for fiscal 2026 due to the realignment and the more pronounced slowdown in the Partners business during the second half of May and early June.

Wix lowered its 2026 bookings growth outlook to the low-teens range from the mid-teens. Revenue growth is now expected in the low- to mid-teens range, also down from the mid-teens. The company expects about $70 million in incremental non-GAAP cost-of-revenue and operating-expense savings in 2026 from the restructuring, with a full-year run-rate savings target of about $150 million.

Wix also raised its 2026 free cash flow guidance, excluding acquisition and restructuring costs, to about $420 million, roughly $20 million above its prior plan. Wix expects $30 million to $35 million in pre-tax restructuring charges, mostly related to cash severance and benefits.

Most of the charges are expected to be booked in the second quarter of 2026, with cash payments occurring later in the year.

Shares of Wix tumbled 10% in premarket trading on June 8, 2026. Wall Street analysts maintain 12 Buy ratings, 8 Neutral ratings, and 1 Sell rating on the stock, with an average 12-month price target of $84 per share.