A layoff notice from Wix starts several time-sensitive financial and legal clocks at once, and most employees don't know they're running. On May 28, 2026, Wix announced it is eliminating approximately 1,400 positions, about 20% of its workforce, as part of a restructuring tied to an AI strategy shift. If you received notice, the decisions below need to happen in a specific order. Some deadlines are fixed by federal law. Others depend on your age, your state, and whether you hold equity.

  • File for unemployment today or tomorrow , most states don't pay retroactively.
  • Don't sign your severance agreement right away , federal law gives you at least 21 days to review it if you're 40 or older.
  • You have 60 days to elect COBRA or enroll in a Marketplace plan; COBRA is retroactive, so you can wait.
  • If you have Incentive Stock Options, the 90-day exercise window starts on your last day worked.
  • A Q2 estimated tax payment may be due June 15, 2026 if your severance was under-withheld.

What happened at Wix?

Wix is a publicly traded web platform company. On May 28, 2026, it announced a company-wide reduction of approximately 20% of its workforce, affecting around 1,400 employees. The company framed the cuts as part of an AI-driven restructuring. Specific affected roles and departments were not disclosed in initial reports. Severance terms have not been made public.

Should you file for unemployment right now?

Yes. File on the day you're laid off or the next business day. Unemployment insurance is a state-administered benefit, and in most states, benefits are not paid retroactively to dates before you filed your claim. Every day you wait is a day you likely won't get paid for.

Go to your state's workforce agency website and file online. If you're not sure which state applies, it's generally the state where you physically worked, not where Wix is incorporated. You'll need your Social Security number, your last day of employment, your employment history for the past 18 months, and basic information about your separation.

Some states require ID verification through a third-party service like ID.me before your first payment clears. Start that process early if your state requires it, because it can take several days. Don't assume your claim is active until you've received confirmation.

You can find your state's filing portal through the Department of Labor's CareerOneStop directory at careeronestop.org. Use our free checklist to track your filing date and confirmation number.

What should you do about your severance agreement?

A severance agreement is a legal contract. In exchange for additional pay, you're typically waiving your right to sue the company. You don't have to sign it right away, and in many cases, you're legally entitled to a waiting period before you decide.

If you're 40 or older, the Older Workers Benefit Protection Act applies. For individual terminations, you must be given at least 21 days to review the agreement. Because Wix is cutting roughly 1,400 employees at once, this qualifies as a group termination program under federal law, which means employees 40 and older get at least 45 days to review. After signing, you have 7 additional days to revoke your signature. (Source: EEOC, eeoc.gov/laws/statutes/adea.cfm)

A few things to look at before you sign: whether the agreement includes a non-compete or non-solicitation clause, whether it covers claims beyond employment (some agreements are broader), whether the severance amount is based on a clear formula, and whether benefits continuation is included. If any of those terms are unclear or unfavorable, that's what the review period is for. Consider having an employment attorney look at it before you sign. Many offer free initial consultations.

Don't sign on day one just to get the check moving. The waiting period exists precisely so you're not pressured into a decision.

What about your health insurance?

COBRA is the federal law that lets you keep your current employer-sponsored health coverage after you lose your job. You have 60 days from your coverage end date or the date you receive the COBRA election notice (whichever is later) to decide. (Source: DOL, dol.gov/agencies/ebsa/laws-and-regulations/laws/cobra)

There's one important detail about COBRA: it's retroactive. That means if you elect COBRA on day 59, your coverage applies back to day one, with no gap. So if you don't have any medical expenses during the 60-day window, you can wait until closer to the deadline before committing. If you do need care, elect immediately.

The cost is the main issue. COBRA requires you to pay the full premium (what you paid plus what Wix paid) plus a 2% administrative fee. The average COBRA premium for individual coverage in 2026 is approximately $703 per month. (Source: KFF, kff.org/health-policy-101-employer-sponsored-health-insurance/) Family coverage is significantly higher.

The alternative is the Health Insurance Marketplace. Losing employer coverage is a qualifying life event, which gives you a 60-day Special Enrollment Period to enroll in a Marketplace plan. (Source: healthcare.gov/sep-list/) Depending on your projected income this year, you may qualify for premium tax credits that make a Marketplace plan cheaper than COBRA. Compare both options before you decide.

What happens to your Wix equity?

Wix is a publicly traded company, so equity is likely part of your compensation. What happens to it after termination depends on what type of grant you have.

If you have Restricted Stock Units (RSUs): unvested RSUs are typically forfeited on your termination date. Vested RSUs that have already settled as shares are yours, but check your grant agreement for any post-termination holding restrictions.

If you have Incentive Stock Options (ISOs): you have 90 days from your last day worked to exercise them and keep the favorable ISO tax treatment under IRC Section 422. (Source: IRS, irs.gov/forms-pubs/about-publication-525) After 90 days, any unexercised ISOs automatically convert to Non-Qualified Stock Options (NQSOs), which are taxed as ordinary income on exercise instead of getting capital gains treatment. That's a meaningful difference.

ISOs also carry AMT (Alternative Minimum Tax) risk. When you exercise an ISO, the spread between the strike price and the fair market value is an AMT preference item. If you're exercising a large grant, you may owe AMT even if you don't sell the shares. Run the numbers or talk to a CPA before you exercise, especially if the spread is large.

If you have Non-Qualified Stock Options (NQSOs): the exercise window and tax treatment are set by your grant agreement. NQSOs are taxed as ordinary income at exercise, so the spread gets reported as W-2 income in the year you exercise.

Pull up your grant agreements in whatever equity platform Wix uses (Carta, Shareworks, or similar) and note your vesting cutoff date and the 90-day deadline from your last day.

What about taxes on your severance?

Severance pay is taxable income. The IRS classifies it as supplemental wages, which means federal income tax is withheld at a flat 22% rate on the first $1 million. (Source: IRS Publication 15, irs.gov/publications/p15) State income tax may also apply depending on where you live.

That 22% withholding rate doesn't mean your actual tax rate is 22%. If your total income this year (salary earned before the layoff, severance, any freelance income) pushes you into a higher bracket, you'll owe more at filing time. You can underpay if you're not careful.

The relevant estimated tax deadlines: Q2 2026 estimated payment is due June 15, 2026, and Q3 is due September 15, 2026. (Source: IRS, irs.gov/businesses/small-businesses-self-employed/when-to-pay-estimated-tax) If your severance was large or if Wix withheld less than your actual liability, you should calculate whether a Q2 payment is needed. The IRS safe harbor is generally paying at least 90% of your current year tax or 100% of last year's tax liability, whichever is smaller.

You don't need to make a payment if your employer withheld enough. Check your pay stub or final W-2 information to see the total federal tax withheld on your severance check.

What do you do with your 401(k)?

Your 401(k) balance belongs to you, including any vested employer match. You have a few options after separation.

Leave it where it is: most plans let you keep the account if your balance is above a minimum (often $5,000). This is fine if you're happy with the fund options and fee structure.

Roll it to an IRA: a direct rollover (where the money goes from the plan custodian straight to an IRA) has no tax consequences and no deadline pressure. This is the cleanest option for most people.

Roll it to a new employer's plan: if you land a new job quickly, you can roll it to your new employer's 401(k) once that plan allows incoming rollovers.

If you take an indirect rollover (meaning the check comes to you and you deposit it yourself), you have 60 days to complete the rollover or the distribution is treated as taxable income, plus a 10% early withdrawal penalty if you're under 59.5. (Source: IRS, irs.gov/retirement-plans/plan-participant-employee/rollover-chart) Your plan custodian is also required to withhold 20% for taxes upfront on indirect rollovers, which you'd have to make up out of pocket to complete the full rollover. A direct rollover avoids all of that.

Don't cash out unless you've exhausted other options. The taxes and penalties on an early withdrawal are significant.

Deadlines and rules described here reflect federal law and general state guidelines as of the article date.

The Decision Calendar

The deadlines above apply whether or not you are tracking them. The Decision Calendar from Layoff HQ puts every applicable deadline on a single personalized calendar, with SMS and email reminders before each one closes. It covers COBRA election windows, severance review periods, unemployment filing, equity exercise deadlines, and estimated tax due dates, built from your last day worked, your state, your age, and whether you have equity. One-time purchase. No subscription. 14-day money-back guarantee.

The Decision Calendar from Layoff HQ is not just a reminder tool. Based on your last day worked, your state, your age, and whether you have equity, it calculates: the COBRA vs. Marketplace cost comparison for your income level, your severance tax exposure and estimated Q2 or Q3 payment due, your equity exercise costs and the tax difference between acting before and after key deadlines, and your financial runway. Then it tracks every deadline on a single personalized calendar and sends SMS and email reminders before each one closes. One-time purchase. No subscription. 14-day money-back guarantee.

Build your free Decision Calendar or see pricing for the full personalized version.

Written by the Layoff HQ research team. Sources verified against DOL, EEOC, IRS, and state workforce agency primary documentation.

Frequently asked questions

How long do I have to file for unemployment after a Wix layoff?

File on the day you're separated or the next business day. Unemployment benefits are not retroactive in most states, so waiting costs you money. Go to your state's workforce agency website to file online.

How long do I have to elect COBRA after losing Wix health coverage?

You have 60 days from your coverage end date or the date you receive the COBRA notice, whichever is later. COBRA coverage is retroactive to the day your employer coverage ended, so if you have no medical expenses during that window, you can wait and decide closer to the deadline.

What happens to my Wix stock options if I'm laid off?

If you hold Incentive Stock Options, you have 90 days from your last day worked to exercise them and keep the favorable ISO tax treatment under IRC Section 422. After 90 days, any unexercised ISOs convert to Non-Qualified Stock Options and lose the ISO tax benefit. Check your grant agreements for exact terms.

Is my Wix severance taxed differently than regular pay?

Yes. The IRS treats severance as supplemental wages. Federal income tax is withheld at 22% automatically. But if your total income for the year puts you in a higher bracket, you'll owe the difference at tax time, and you may need to make an estimated payment by June 15, 2026.

  1. Wix layoff announcement, CNBC, May 28, 2026: https://www.cnbc.com
  2. COBRA continuation coverage: https://www.dol.gov/agencies/ebsa/laws-and-regulations/laws/cobra
  3. COBRA and Marketplace Special Enrollment Period: https://www.healthcare.gov/sep-list/
  4. KFF, Employer Health Benefits Survey 2026: https://www.kff.org/health-policy-101-employer-sponsored-health-insurance/
  5. OWBPA and ADEA waiver requirements: https://www.eeoc.gov/laws/statutes/adea.cfm
  6. IRS Publication 15, supplemental wage withholding: https://www.irs.gov/publications/p15
  7. ISO post-termination exercise window, IRC Section 422: https://www.irs.gov/forms-pubs/about-publication-525
  8. IRS 60-day rollover rule: https://www.irs.gov/retirement-plans/plan-participant-employee/rollover-chart
  9. IRS estimated tax due dates: https://www.irs.gov/businesses/small-businesses-self-employed/when-to-pay-estimated-tax