Automattic, creator of WordPress, lays off 16% of its staff.

Automattic, the company behind WordPress.com, Tumblr, WooCommerce, and other online services, is undergoing a layoff. According to a post on the company's blog, approximately 16% of employees in various divisions will be affected. Prior to the layoffs, Automattic's website listed a workforce of 1,744, which means that over 270 people could have lost their jobs, although the company has not confirmed this figure. It is rumored that the exact number of layoffs is 281.

The post, which was also communicated to employees via Slack, emphasizes that this "restructuring" is necessary due to market competitiveness and the rapid pace of technological advancement. This move comes after a challenging year for Automattic, marked by a controversial legal battle with the hosting company WP Engine. This conflict had already led to the departure of some Automattic employees last fall.

Automattic's CEO, Matt Mullenweg, has expressed his view that WP Engine has not sufficiently contributed to the open-source project WordPress.org, considering that the use of the "WP" brand has created confusion among consumers regarding its relationship with WordPress. In Wednesday's announcement, Mullenweg stated that the layoffs would allow Automattic to be "more agile and respond quickly," "eliminate silos that have created inefficiencies," "focus on product quality," and "ensure a viable financial model for long-term success."

The post, written by Mullenweg, also mentions that in order to support its customers and products, it is necessary to improve productivity, profitability, and investment capacity. The layoffs will affect employees in 90 countries, who will receive severance packages and job placement assistance, among other benefits. Mullenweg is confident that despite the situation, Automattic has products with significant potential and that it will emerge from this situation in a stronger position, working to build a successful and well-designed company that continues its mission to democratize the internet.

According to reports, the layoffs were effective immediately, meaning that employees received an email and lost access to Slack instantly. Some of those laid off are long-time employees with over ten years at the company. This news comes after the cancellation of the company's annual "Grand Meetup" for 2025.