Automattic, the company that operates WordPress.com, Tumblr, WooCommerce, and a number of other online platforms, has announced a significant employment drop. The company is laying off 16% of its staff across various areas, according to a blog post published on Wednesday.
Before the layoffs, Automattic’s website claimed 1,744 employees, implying that more than 270 people may have lost their employment. (Automattic declined to confirm this figure, but we understand the precise number was 281.)
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Reasons Behind the Automattic Layoffs
The decision comes as Automattic faces increasing competition and rapid technological advancements. According to CEO Matt Mullenweg, the restructuring is intended to increase the company’s efficiency, improve product quality, and ensure long-term financial stability.
However, this move follows a tough period for the company. Last year, Automattic was involved in a legal dispute with hosting provider WP Engine. Mullenweg argued that WP Engine did not contribute enough to the open-source WordPress.org project and that its use of “WP” in branding was misleading. The controversy led to some employees leaving the company even before these layoffs.
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Impact on Employees
The Automattic layoffs affect employees in about 90 countries. Those impacted will receive severance pay and job placement support. Reports indicate that some of the affected employees had been with the company for over a decade.
Sources also say the layoffs took effect immediately—employees received an email and then lost access to company systems, including Slack.
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Affected Departments
WooCommerce was responsible for the majority of the layoffs, with over 100 people affected. Tumblr, Day One, and other AI-related departments have also been affected. In the United States, jobs include marketing, sales, product management, community relations, and business operations. The terminated employee was paid nine weeks’ salary as compensation.
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Looking ahead
Mullenweg remains positive, claiming that these adjustments would allow Automattic to run more efficiently and fulfill its mission of making the internet more accessible. He expects the company to emerge stronger, with better goods and a more sustainable business strategy.
Article Source:
https://techcrunch.com/2025/04/02/wordpress-maker-automattic-lays-off-16-of-staff/
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Vikas Maurya is a professional blogger and Data analyst who writes about a variety of topics related to his niche, including data analysis and digital marketing.
