Automattic Announces Significant Workforce Reduction Across Divisions

On Apr 3, 2025

Automattic, the company behind WordPress.com, Tumblr, WooCommerce, and other digital services, has announced a significant workforce reduction.

Earlier today, CEO Matt Mullenweg shared the following note with Automattic employees. We are deeply grateful to all departing Automatticians. https://t.co/JUIVU1D2NH

— Automattic (@automattic) April 2, 2025

According to an official blog post published Wednesday, the layoffs will impact 16% of employees across various divisions.

Number of Employees Affected

Before the layoffs, Automattic’s website listed 1,744 employees, suggesting that over 270 people have lost their jobs. Although the company has not confirmed an exact figure, sources indicate the total number of affected employees is 281.

Reasons Behind the Layoffs

In the announcement, Automattic explained that the restructuring was necessary due to:

Increasing market competition
Rapid technological advancements
The need to streamline operations and improve efficiency

Legal Disputes and Company Challenges

The decision comes amid a turbulent period for Automattic, particularly its ongoing legal battle with hosting provider WP Engine.

The dispute revolves around:

WP Engine’s alleged insufficient contributions to the open-source WordPress.org project
Concerns that the “WP” branding confuses consumers about its affiliation with WordPress

This conflict has already led to employee departures in previous months.

CEO’s Statement on the Restructuring

Automattic CEO Matt Mullenweg stated that the layoffs will help the company:

Become “more agile and responsive”
Eliminate inefficiencies caused by siloed teams
Focus on product quality
Ensure long-term financial stability

Mullenweg emphasised the need to improve productivity and profitability while maintaining the company’s mission to democratise the internet.

Severance and Employee Support

The layoffs affect employees across 90 countries. Those impacted will receive:

Severance packages (reportedly 9 weeks as a default)
Job placement assistance
Other transitional support

Immediate Impact on Employees

Sources indicate that the layoffs took effect immediately, with affected employees receiving an email before losing access to company systems, including Slack. Among those laid off are longtime employees with over a decade at Automattic.

Departments and Teams Affected

After the announcement, reports emerged about which divisions were most impacted. Key findings include:

WooCommerce: Over 100 employees affected
Other impacted teams: Tumblr, Day One, and AI-related divisions
Roles affected (U.S.):

Account executives
Marketing
Product management and design
Sales
Community management
Business operations

Cancellation of Annual Retreat

Additionally, sources revealed that Automattic has canceled its annual “Grand Meetup” company retreat for 2025, further signaling a shift in the company’s priorities.

Despite the restructuring, Mullenweg expressed confidence in Automattic’s future, stating that the company will emerge stronger and better positioned for long-term success.