Automattic, the company responsible for WordPress.com, Tumblr, WooCommerce, and various other online services, has announced a reduction in its workforce. According to a blog post released by Automattic on Wednesday, the layoffs will affect 16% of the staff across different divisions.
Before the layoffs, Automattic’s website indicated that there were 1,744 employees, suggesting that more than 270 individuals may have been affected. Automattic has been contacted for confirmation of these numbers, but there has been no response at the time of reporting.
The announcement, which was also communicated to company employees via Slack earlier on Wednesday, states that this “restructuring” is essential due to the competitive nature of the market and the rapid evolution of technology.
This decision follows a challenging year for Automattic, which has been involved in a controversial legal dispute with the hosting company, WP Engine. This ongoing issue had already led to the departure of some Automattic employees in the previous autumn. Automattic’s CEO, Matt Mullenweg, has expressed concerns that WP Engine did not adequately contribute to the open-source project WordPress.org, and that its use of the “WP” brand was confusing consumers regarding its affiliation with WordPress itself.
In the announcement made on Wednesday, Mullenweg explained that the layoffs aim to make Automattic “more agile and responsive,” to “break down silos that have created inefficiencies,” to “focus on product quality,” and to “ensure a viable financial model for long-term success.”
The post, authored by Mullenweg, emphasized the importance of improving productivity, profitability, and investment capacity to continue supporting customers and products.
Employees affected by the layoffs, who are spread across approximately 90 countries, will receive a severance package, job placement assistance, among other support measures.
Mullenweg expressed confidence that Automattic will emerge from this situation in a better position, with the potential to create a profitable, well-designed company that continues its mission to democratize the internet.
Sources from TechCrunch indicated that the layoffs were effective immediately, with affected employees receiving an email and subsequently losing access to Slack. It is understood that the layoffs included some employees who have been with the company for more than a decade.
Additionally, a source reported that Automattic has canceled its annual “Grand Meetup” company retreat for 2025.