Even Wix, the highly successful Israeli company that offers people a way to build their own websites free of charge, is not immune from the ongoing economic crisis in the markets. The company is set to fire another 100 employees. Wix currently has 6,000 workers and about half of them work in Israel.
This marks the company’s second round of layoffs. Wix fired several dozen employees in June when it closed its subsidiary firm Wix Answers.
The move comes just three months after Wix acquired Israeli startup Rise.ai, the gift card and customer re-engagement solution for online brands.
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But Wix is in good company – or bad company as the case may be.
Since July 1st, 12 other Israeli firms have been forced to make cutbacks in their staffs, laying off many employees. This includes four unicorns. And one Israeli firm that was bought out by a foreign company a few years back is being shuttered entirely. And even established publicly traded firms like Wix are having problems too.
This trend is largely attributed to the current global inflation crisis and the steps being taken to curb it. The U.S. and Israel have both raised interest rates. That move means there will be less money for future investments so companies of all kinds are contracting, if only temporarily.
Founded in 2006, Wix.com is the do-it-yourself website building platform that gives users total creative freedom online. The company boasts that with “powerful technology” and “unparalleled design” capabilities, you can create a beautiful, professional and functional web presence to manage and grow your business. The Wix Editor gives you full design freedom with over 500 designer-made templates to make your own website.
Wix currently has a market cap of about $4.2 billion. This is down almost 80% from the $20 billion valuation that the company had in early 2021.