The crisis in Israeli high-tech is growing: Two local technology giants, Wix and Rapyd, began broad rounds of layoffs Thursday that will affect many employees in the industry.
"The hardest decision I have ever made"
At Wix, the much-discussed layoffs officially began this morning. The company's management convened employees for an urgent Zoom call, in which they were briefed on the planned cuts, following a detailed update email sent by founder and CEO Avishai Abrahami.
In a post published on the social media platform X, Abrahami addressed the painful move directly. "Today is a sad day for me. We made a very hard decision. We are reducing the Wix team size by roughly 20%. It is one of the hardest decisions I have had to make, but I am confident it is the right one."
Sharing here the message I just sent to the whole Wix team:
Today is a sad day for me. We have made a very hard decision.
We are reducing the Wix team size by roughly 20%. It is one of the hardest decisions I have had to make, but I am confident it is the right one, and I will…
— Avishai Abrahami (@Avishai_ab) May 28, 2026
According to Abrahami, the decision to make the cuts stems first and foremost from the strengthening of the shekel against the dollar. This situation is creating heavy economic pressure on the company, since most of its expenses are in shekels while the bulk of its revenue is received in US currency. In addition, the CEO said the rapid development of artificial intelligence technology was completely changing the way companies are built and operate today.
Against the backdrop of the weakening dollar
The dramatic move comes just three days after Israel Hayom reported that Wix had decided on the largest round of layoffs in its history, following weak financial results and a sharp drop of about 50% in its share price since the start of the year. As of the end of the first quarter of the year, Wix employed 5,277 people, more than 60% of them here in Israel.
Over the past year, most of Wix's growth came from its "vibe coding" activity, which developed following the acquisition of Maor Shlomo's company Base44. This is considered a lean operation in terms of manpower, but it requires huge marketing investments and generates very significant computing costs. The current round of cuts also comes just a few months after another storm at Wix, when management demanded that employees return to full-time work from the office, a move that sparked broad opposition within the company at the time and caused an uproar across the high-tech industry.
From lavish parties to painful cuts
Alongside the drama at Wix, Israeli fintech company Rapyd is also joining the wave of cuts. The company, which at the height of the high-tech boom was known, among other things, for its lavish Purim parties and huge events for employees, is also launching a broad layoff move. The employees affected are expected to receive notice of the end of their employment.
The timing of the layoffs at Rapyd is attracting particular interest, since only two days ago it was reported that the company's founder and CEO was buying 50% of Fedanco Sport, which is owned by the Federman family, and as a result is expected to serve as a director of the Maccabi Tel Aviv Basketball club. The contrast between the huge deal in Israeli sports and the distribution of dismissal letters at the company clearly illustrates the complex period Israel's high-tech industry is going through.
