Israeli cloud-based web development services company Wix.com Ltd. (Nasdaq: WIX) yesterday laid off 370 employees, most of them in the customer services department in the US.
Wix president Nir Zohar wrote to employees detailing some of the reasons leading to the latest move. "When we see the economy remaining weak, we understand that we must implement the required change in the way we are managed in order to adapt ourselves."
In the letter to employees, Zohar stressed that the employees and managers who had lost their jobs had already received notification. "It's an email that ios very difficult to write to them. With a heavy heart I share with you that we have parted with 370 of our people. Most of them belong to our customer service organization, and most of them are in the US. Their managers have already informed them about the difficult news, offered support, and explained the process that is expected to take place.
"As you know the global economy has dramatically slowed down," Zohar added. "We see this in all sectors …. As a result of which Wix and all its rivals have experienced a global slowdown, the significance of which is that we need to staff a smaller customer service. We tried to postpone the decision and not to respond quickly after the Covid pandemic in the hope that the economy would recover. However, we see the economy remaining weak and we understand that we must implement the required change in the way we are managed in order to adapt ourselves to the new level of demand from our customers.
Wix declined to comment.
In August 2022 the company laid off 100 employees and that round of cuts also mainly effected staff outside of Israel. In November 2022, Wix published relatively strong financial results with revenue of $345.8 million for the third quarter of 2022 and non-GAAP earnings per share profit of $0.06.
Wix share price rose 4.70% on Nasdaq yesterday to $91.02, giving a market cap of $5.351 billion.
Published by Globes, Israel business news - en.globes.co.il - on February 16, 2023.
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