Automattic Announces Workforce Reductions

Automattic, the parent company of WordPress.com, Tumblr, WooCommerce, and various other digital platforms, has made the decision to decrease its workforce. A recent blog entry disclosed that this reduction will affect 16% of its employees across different departments.

Workforce Numbers and Layoffs

Currently, Automattic’s website indicates a staff count of 1,744, suggesting that over 270 positions may be eliminated. While Automattic did not provide a specific figure, reports indicate that the number of employees impacted is 281.

Reasons Behind the Restructuring

The blog post, also shared with employees via Slack on Wednesday, noted that this “restructuring” is a response to the fiercely competitive market and the rapid advancement of technology.

This decision follows a challenging year for the company, which has been embroiled in a contentious legal dispute with hosting provider WP Engine. This situation has already resulted in the exit of several employees from Automattic. CEO Matt Mullenweg has expressed concerns that WP Engine does not adequately support the WordPress.org open-source project, while also believing that WP Engine’s use of the “WP” brand led to confusion among consumers regarding its connection to WordPress.

Future Goals and Employee Support

In the announcement, Mullenweg emphasized that these layoffs are intended to make Automattic “more agile and responsive” while eliminating inefficiencies and focusing on product quality. The goal is to secure a sustainable financial framework that supports long-term growth and success.

The message indicates the need for improved productivity, profitability, and a heightened ability to invest in customer support and product development.

Impacts of the Layoffs

The workforce reductions will touch employees in 90 countries. Affected individuals will be provided with severance packages and assistance for job placement, among other support measures.

Mullenweg expressed confidence in Automattic’s potential, asserting that the company aims to emerge from this transition in a stronger position to cultivate a thriving and profitable environment dedicated to the mission of democratizing the internet.

Immediate Effects on Employees

Sources indicate that the layoffs took effect immediately, with employees receiving notification via email and consequently losing access to Slack. Some of those affected had been with the company for over a decade.

This announcement comes on the heels of Automattic’s decision to cancel its annual “Grand Meetup” company retreat scheduled for 2025, according to insiders.