- WordPress.com, Tumblr and WooCommerce owner Automattic is laying off 16%
- Automattic wants to become more agile and responsive
- Long-term financial viability and profitability is also key
Automattic, the company behind WordPress.com, Tumblr and WooCommerce, has confirmed it will be laying off approximately 16% of its workforce.
The news is estimated to impact around 280 of its nearly 1,750 employees (via TechCrunch), with CEO Matt Mullenweg confirming HR representatives would be reaching out to affected workers after his email landed in the inboxes of all “Automatticians.”
The usual “financial and support benefits” were promised, with Mullenweg citing profitability as a key driver for the layoffs.
Automattic layoffs
“We have reached an important crossroads,” Mullenweg wrote, illustrating a scenario of continued growth and an equally high competitive market. “We must improve our productivity, profitability, and capacity to invest,” he added.
The leader confirmed that the changes would help the company to become more agile and responsive, break down organizational silos, focus on product quality and ensure long-term financial viability.
More broadly, the layoffs follow a precarious year for both Automattic and Mullenweg personally, after he became embroiled in a battle with WP Engine, likening the WordPress hosting provider to a cancer that takes more than it gives back to the project.
Mullenweg added the redundancy process would be more complex with workers in 90 countries, but as a rule they could expect severance pay and other benefits, including the retention of company laptops and other job placement resources.
“I’m confident we will come out of this situation in a better position… In the coming weeks, we’ll share more about our path forward and how we’ll work together to strengthen our company,” Mullenweg added.
According to layoffs.fyi, Automattic became the 96th tech company to announce layoffs in 2025, but although layoffs continue to plague the tech sector, workers are seemingly a lot more safe than the height of the tech sector layoffs in 2023.
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