Automattic Cuts 16% of Workforce in Major Restructuring
The WordPress.com parent company aims to boost efficiency and profitability while navigating legal disputes and open-source challenges.
- Automattic has laid off approximately 270-280 employees, reducing its workforce by 16% to around 1,495 staff across 90 countries.
- CEO Matt Mullenweg stated the layoffs are intended to improve productivity, profitability, and investment capacity in a competitive tech market.
- The restructuring follows a tumultuous year, including an 8.4% workforce reduction through buyouts and an ongoing legal battle with WP Engine over trademark use and WordPress ecosystem contributions.
- Affected employees are receiving severance packages and job placement assistance, with some already seeking new opportunities.
- Despite profitability and growth, Automattic is restructuring to remain agile, address inefficiencies, and secure its long-term position in the rapidly evolving technology landscape.