Automattic Announces Restructuring and Layoffs

Automattic, the parent company of WordPress.com, Tumblr, WooCommerce, and several other online services, has announced a reduction in its workforce. According to a blog post published by Automattic on Wednesday, the layoffs will affect 16% of staff across various divisions.

Prior to the layoffs, Automattic’s website listed approximately 1,744 employees. This means that around 270 people may have been let go, although the company has not confirmed this number as of the time of publication.

The company attributed the “restructuring” to the competitive nature of the market and the rapid evolution of technology. The announcement was shared with employees via Slack earlier on Wednesday.

The move follows a tumultuous year for Automattic, which has been engaged in a high-profile legal battle with hosting company WP Engine. The controversy led to the departure of some employees last fall. Automattic CEO Matt Mullenweg has argued that WP Engine did not contribute sufficiently to the open-source project WordPress.org and that its use of the “WP” brand was confusing consumers about its affiliation with WordPress.

In the announcement, Mullenweg explained that the layoffs will enable Automattic to become more agile and responsive, break down inefficient silos, focus on product quality, and ensure a viable financial model for long-term success.

“To support our customers and products, we must improve our productivity, profitability, and capacity to invest,” Mullenweg wrote in the post.

The layoffs will affect employees in 90 countries, who will receive a severance package, job placement assistance, and other support.

“Automattic has multiple products with world-changing potential in WordPress and beyond. I’m confident we will emerge from this situation in a better position, poised to create a vibrant, profitable, well-designed company that will continue our mission to democratize the internet,” Mullenweg said.

According to sources, the layoffs were effective immediately, with affected employees losing access to Slack after receiving an email. The layoffs include some long-time employees who have been with the company for over a decade.

The news follows Automattic’s cancellation of its annual “Grand Meetup” company retreat for 2025, according to a source.

Sarah Perez can be reached at @sarahperez.01 on Signal and sarahp@techcrunch.com