April 3, 2025 – In a significant development, Automattic, the parent company behind a suite of online services including WordPress.com, Tumblr, and WooCommerce, has initiated a round of layoffs. A blog post released by the company on Wednesday revealed that the layoffs would affect 16% of its workforce across all departments.
Prior to the layoffs, Automattic’s website listed 1,744 employees, suggesting that potentially over 270 individuals could lose their jobs. While Automattic declined to confirm this figure, TechCrunch has learned that the actual number of layoffs stands at 281.
The blog post, which was shared with employees via Slack earlier on Wednesday, explained that the “restructuring” was necessary due to the competitive market landscape and the rapid evolution of technology.
This move comes after a tumultuous year for Automattic, which was involved in a contentious legal dispute with hosting company WP Engine. The ongoing saga led to some Automattic employees departing in the fall of last year. According to Automattic CEO Matt Mullenweg, WP Engine did not adequately contribute to the open-source project WordPress.org and its use of the “WP” brand caused consumer confusion about its association with WordPress itself.
In Wednesday’s announcement, Mullenweg stated that the newly announced layoffs would make Automattic “more agile and responsive,” “break down barriers that create inefficiencies,” “focus on product quality,” and “ensure a viable financial model for long-term success.”
“To support our customers and products, we must increase our productivity, profitability, and investment capabilities,” Mullenweg wrote in the post.
The layoffs will impact employees in 90 countries, who will receive severance pay, job placement assistance, and other support.
“Automattic has multiple globally impactful products in WordPress and beyond. I believe we will emerge from this situation in a better position, ready to create a vibrant, profitable, and well-designed company that continues our mission to democratize the internet,” Mullenweg wrote.
According to TechCrunch sources, the layoffs were immediate, meaning employees lost access to Slack upon receiving the email, and the layoffs included some senior employees who had been with the company for over a decade.
Additionally, sources claimed that Automattic has canceled its annual “Grand Meetup” company event for 2025.
