Automattic, the parent entity of WordPress.com, WooCommerce, and Tumblr, has initiated a substantial reduction of its workforce across four distinct business sectors, with anticipations for additional layoffs in the near future.
These workforce reductions, which have unfolded over at least the past week, have impacted the company’s communications and social media teams, along with personnel at WordPress.com and its VIP enterprise sector. The total count of employees affected has not been disclosed by the company.
The recent departures compound ongoing leadership and organizational uncertainty within Automattic, following a contentious boardroom conflict involving chief executive Matt Mullenweg and the resignation of several high-ranking executives.
Segments of the business experiencing layoffs
According to TechCrunch, personnel across various functions have been dismissed throughout October, particularly those engaged in marketing and product roles at WordPress.com.
The directly impacted areas encompass:
- Communications: Megan Fox, Automattic’s director of communications, announced on LinkedIn last week that her position had been terminated, labeling the development as an “unexpected end”.
- Social team: Employees within the company’s social media department have also faced job eliminations.
- WordPress.com: The cuts extend to the flagship website-hosting and publishing division, affecting individuals in marketing and product, as reported by TechCrunch.
- VIP enterprise business: Further reductions have impacted the company’s enterprise-focused branch.
The total number of job cuts has not been confirmed by the company. Although the About page cites 1,397 staff, according to TechCrunch, this figure reflects the overall headcount rather than those specifically laid off.
Leadership turbulence precedes cuts
The recent layoffs occur amid a tumultuous phase for Automattic’s leadership. In September, an unsuccessful attempt was made by the company’s board to oust Mullenweg as chief executive.
This dispute precipitated a complete board turnover and the exodus of senior executives, which included the chief financial officer, interim CFO, and chief legal officer.
Jeremy Klaperman, Automattic’s interim CFO, departed earlier in October, mere weeks after the upheaval in the boardroom.
Mullenweg later suggested on X that Klaperman’s resignation might have stemmed from the company’s decision to explore external candidates for the CFO role.
Additional reports indicated Mullenweg had requested Klaperman to reconsider his resignation.
In a separate context, TechCrunch disclosed that Mullenweg revealed private information regarding a departing executive during an internal Slack discussion.
This disclosure pertained to a health issue involving the executive’s spouse and a conflict over continued healthcare coverage.
This revelation shocked some employees, and it was noted that Mullenweg mentioned that his own fiancée had been affected by a similar health condition.
Company indicates staggered changes
Automattic has provided scant public information about the scope of the layoffs. When queried by TechCrunch last week, Mullenweg remarked that the number of job terminations did not exceed the company’s typical levels.
In response to questions regarding the increasing number of layoffs, he stated that he was “mostly focused on PHP,” referencing a security concern related to the programming language.
Furthermore, Automattic spokesperson Chenda Ngak conveyed that the company is implementing organizational changes in a staggered manner to afford more substantial severance benefits and allow employees additional time within the organization.
However, the statement did not specify the number of jobs slated for elimination or the timeline for the completion of this process.
Future layoffs anticipated
Sources familiar with the situation indicated to TechCrunch that additional workforce reductions could occur in the coming months.
There is speculation that the company is seeking to bolster its revenue figures for the fourth quarter prior to a debt renegotiation anticipated in June.
Automattic has not validated this rumored financial necessity nor announced a timeline for any forthcoming layoffs.
The imminent months will be pivotal in assessing the scope of the ongoing restructuring. Until further details are divulged by the company, the overall number of impacted employees and the potential for more reductions remain uncertain.
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