Automattic has undergone a major restructuring, cutting its workforce by around 16%, bringing the total number of employees down from 1,777 to 1,495. CEO Matt Mullenweg informed employees of the decision, citing the need to improve productivity, streamline operations, and ensure long-term financial sustainability.
The layoffs impact over 270 employees, who will receive severance packages, eligible to retain their company laptop and job placement support. Mullenweg emphasized that the move is aimed at making Automattic more agile and efficient in an increasingly competitive market.
The Factors Driving This Decision
“I have had to make difficult decisions to protect Automattic’s long-term future,” CEO Matt Mullenweg stated in the announcement, acknowledging the challenging nature of the restructuring.
The layoffs seem not to be driven by immediate financial struggles, as Mullenweg stated, “While our revenue continues to grow, Automattic operates in a highly competitive market, and technology is evolving at unprecedented levels. To support our customers and products, we must improve our productivity, profitability, and capacity to invest.”
Mullenweg outlined several key reasons for the restructuring, emphasizing the need to enhance efficiency and long-term sustainability:
- Become more agile and responsive.
- Break down silos that have created inefficiencies.
- Focus on product quality, doing fewer things better.
- Ensure a viable financial model for long-term success.
Layoff Numbers and Global Reach
The layoffs will impact employees across 90 countries, and Automattic has emphasized its commitment to supporting them through this transition with financial and career assistance.
A quick look at Automattic’s About Us page now states, “ There are 1,495 of us Automatticians in nearly every corner of the globe, speaking 116 different languages.”
With the help of Wayback Machine, we can see that the previous version of the page stated, “There are 1,774 of us Automatticians in nearly every corner of the globe, speaking 116 different languages.”
This change reflects that around 279 have been affected by this restructuring. If we are to go by 16 % of 1774, then it’s well over 280 employees. We currently do not have the exact number of employees who were laid off.
Several ex-Automatticians announced on X and LinkedIn that they were affected by the layoffs and are now seeking new opportunities.
Christopher Smith, a developer who worked at Automattic for nearly 10 years, posted, “ If you follow tech news, I was one of the 16% axed at Automattic. Nothing else to do except to get back at it. If you need help with WordPress (especially WooCommerce), general PHP development, Stripe/Sift/Paypal/Braintree development, I’m your guy.”
After 7 years and 5 months at Automattic, RC Lachance, Head of AI Classification Services, shared on LinkedIn that he was impacted by the layoffs, “ I had thought that leading an AI team, and doubling my output with AI-assisted coding would keep my job secure after returning from parental leave, but today I received an email that I am a part of the Automattic layoffs…..For now, that means I’m #OpenToWork, happy to connect, and ready to find the next company to grow with for the next 7 years.”
Eric Jinks, who was a Senior Software Engineer with over 10 years of experience, also posted on LinkedIn that he is open to new opportunities,” Hey friends — I was recently caught up in the layoffs at Automattic. It’s a tough moment, but I’m optimistic and excited for what’s next. I’m looking for my next role – somewhere I can keep building great stuff with great people. If you know of anything going or just want to chat, I’d love to hear from you….”
Jonathan Lane, Senior Quality Engineer at Automattic, said that his entire team was laid off, “Hey folks. My entire team was part of the 16% that Automattic laid off today so I’m back on the hunt for my next role. ….”
Last year, Mullenweg offered an “Alignment Offer” to his employees who wished to leave Automattic following the WP Engine legal battle. The offer provided them with $30,000 or six months of salary, whichever is higher.
The ongoing turmoil between Automattic and WP Engine has resulted in various developments, such as the controversial ACF plugin takeover and the WP Engine Tracker website, Automattic slashing its WordPress contribution hours by over 98% and even hinting that the legal battles could bankrupt Mullenweg or force the closure of WordPress.org.
Mullenweg expressed confidence that Automattic will emerge stronger from this restructuring, reaffirming the company’s mission to democratize the internet, “ Automattic has multiple products with world-touching potential in WordPress and beyond. I’m confident we will come out of this situation in a better position, poised to create a vibrant, profitable, well-designed company that will continue our mission to democratize the internet.”
Community Response
The layoffs have sparked discussions across various platforms and are being discussed on Reddit, too.
Kellie Peterson formed Head of Domains at Automattic, voiced on X, “While @photomatt is busy trying to spin that these ~280 lost jobs today because of performance issues… I can tell you that’s absolutely true. **His performance/incompetence** The # of brilliant, hard working, and talented people who were kicked to the curb today is staggering.”
Gary Bairéad highlighted how the severance offer is inadequate and that other employees should plan their exit, “ Automattic’s severance offer is derisory btw. If you still work there, start planning your exit now. Things are going to get worse internally, you’ll be squeezed and expected to pick up the slack.”
Zach Holman, a developer, startup advisor, and angel investor questioned the logic of announcing layoffs while acknowledging revenue growth, “ Honestly, amazing to start a blog post out with “while our revenue continues to grow” and then announce layoffs in the next paragraph. They never fire the idiots who hired the “bad employees” in the first place, tho.”
Ryan Duff, a developer and former WordPress contributor, also weighed in on the layoffs, criticizing Automattic’s leadership and the timing of the decision, “ Bad day to be an @automattic employee while the decisions of MCM continue to run the company into the ground. 16% or roughly 1/6th being let go… @photomatt was bragging about hiring and expanding after the voluntary buy-outs a few months ago.”