Website design company Wix has announced its plan to sharply cut costs by $150 million per year. This comes after the company reported a smaller-than-expected second-quarter loss on Wednesday.
The Israeli company’s revenue rose by 9% during the period to $345.2 million, while it lost 14¢ per share excluding one-time items; an improvement on the 28¢ per share loss from a year earlier. In addition, the company beat analysts’ expectations of a loss of 34¢ excluding one-time items.
Chief executive Avishai Abrahami stated that despite current macroeconomic conditions, the company will do what is in its control in order to improve its operational efficiency and boost its profitability.
Wix has formulated a three-year plan aimed at achieving this goal. This includes cost-cutting measures such as labor cutbacks. According to this plan, 20% of the company’s targeted annualized savings are set to be realized already in 2022.
The company projects revenue of $341 million to $345 million in Q3; an annual growth of 7% to 8%. This figure falls short of analysts’ estimates of $354 million.
So far in 2022, Wix’s shares have plummeted by 56%.