Elementor Announces Layoffs of Around 100 Employees Amid AI-Focused Restructuring

Elementor, the Israeli web development platform, has announced a significant restructuring plan that will result in the layoff of approximately 100 employees, representing about 30% of its workforce. This move follows a similar downsizing by Wix, which cut around 1,000 jobs last month. The company stated that the layoffs are part of an organizational reset to adapt to the rapid changes brought by artificial intelligence in the website-building industry.

Founded in 2015, Elementor powers over 25 million websites and is installed on about 13% of the world’s internet sites. The company plans to shift to a flatter organizational structure with fewer management layers, focusing on its core product and profitable growth based on existing revenue streams. Elementor highlighted the emergence of AI agents as key users and builders in the web ecosystem, prompting the need for this strategic pivot.

In March, Elementor launched Sticklet AI, an app enabling users to develop web applications through AI without coding knowledge, entering the AI-driven web development space later than competitors like Base44 (acquired by Wix) and Lovable. Employees affected by the layoffs have been called for hearings, and the company pledged to provide support and severance packages exceeding legal requirements.

CEO and co-founder Yoni Luxenberg described the decision as painful but necessary to ensure Elementor remains independent, resilient, and capable of leading the next chapter of the internet. He acknowledged the company’s past successes and admitted they underestimated the speed of technological disruption impacting their traditional business model.