Automattic — the company behind WordPress.com, WooCommerce, Tumblr, and other major digital platforms — has laid off 16% of its global workforce, impacting an estimated 281 employees across more than 90 countries.
The decision, shared internally via Slack and in a blog post by CEO Matt Mullenweg, is part of a broader restructuring initiative aimed at making the company “more agile and responsive” in a fast-evolving tech landscape.
“To support our customers and products, we must improve our productivity, profitability, and capacity to invest,” Mullenweg wrote.
The layoffs affect multiple divisions, with significant cuts at WooCommerce, Tumblr, Day One, and Automattic’s AI teams. In some cases, like Day One, the reduction exceeded the 16% company-wide average.
Employees were reportedly locked out of systems immediately after being notified, with severance packages including nine weeks’ pay (more in countries with stricter labor laws), along with job placement support.
The cuts come after a challenging year for Automattic, including a public dispute with WP Engine over the use of the “WP” brand and concerns about contributions to the WordPress.org open-source project. The company also canceled its 2025 Grand Meetup, a longstanding company-wide retreat.
Despite the setback, Mullenweg emphasized a renewed focus on product quality, breaking down internal silos, and ensuring financial sustainability:
“Automattic has multiple products with world-touching potential… I’m confident we will come out of this situation in a better position.”
The move highlights the mounting pressure on even mature tech companies to streamline and adapt in an increasingly competitive and AI-driven environment.
Related News