Automattic, the parent company of WordPress.com, WooCommerce, and Tumblr, has initiated layoffs, with internal sources indicating that further staff reductions are expected. The cuts, which have occurred over the past week, have affected the company’s communications and social teams, as well as its WordPress.com and VIP enterprise divisions.
These departures follow a period of instability at the company, which recently experienced a failed attempt by its board to remove CEO Matt Mullenweg in September. The event led to a complete turnover of the board and the exits of several executives, including the CFO, interim CFO, and Chief Legal Officer.
Megan Fox, Automattic’s director of communications, announced her departure on LinkedIn last week, describing the exit as an “unexpected end” and noting that her position had been “eliminated.”
Following reports that interim CFO Jeremy Klaperman left the company earlier this month, Mullenweg suggested on X that Klaperman may have been “offended” by the company’s decision to seek external candidates for the position. However, sources indicated that Mullenweg had internally requested that Klaperman reconsider his departure.
According to screenshots viewed by TechCrunch, Mullenweg also shared personal information regarding a recently departed executive in the company’s internal Slack channel. The post discussed a health matter involving the executive’s spouse and alleged that the company was not providing the person with COBRA insurance, noting that the executive was threatening to sue. Mullenweg also mentioned that his own fiancée had been affected by the same health condition. Some employees expressed shock that the CEO shared such private information in a company forum.
Sources have reported that additional staff members, including those in marketing and product roles at WordPress.com, have been let go throughout the month. When asked for comment regarding the layoffs last week, Mullenweg stated that the terminations were not above normal levels. When asked on Wednesday about the increasing number of cuts, Mullenweg said he was “mostly focused on PHP,” referencing a security issue he had posted about on X.
While Automattic’s website lists 1,397 employees, insiders suggest the company plans to spread layoffs over the coming months to improve Q4 revenue figures ahead of a debt renegotiation scheduled for June.
