Automattic Lays Off 16% of Workforce Amid Market Challenges

Automattic, the parent company of WordPress.com, Tumblr, and WooCommerce, has announced layoffs affecting 16% of its workforce, impacting employees across various departments and regions. The decision, revealed in a blog post on April 2, 2025, comes as the company seeks to streamline operations and improve financial stability.

Over 270 Employees Affected by Layoffs

Before the layoffs, Automattic employed 1,744 people, meaning that over 270 employees have lost their jobs. While the company has not disclosed an exact figure, reports suggest that 281 employees were affected.

The decision follows a turbulent year for Automattic, marked by a legal battle with WP Engine, a prominent hosting provider. WordPress.org CEO Matt Mullenweg has previously criticized WP Engine for not contributing sufficiently to the open-source WordPress project and for allegedly confusing consumers with its branding.

In an official statement, Mullenweg emphasized that the restructuring aims to make the company “more agile and responsive,” improve efficiency, and ensure long-term sustainability.

Employees Across 90 Countries Impacted

The layoffs affect employees worldwide, spanning marketing, sales, product management, business operations, and community roles. According to reports:

  • Over 100 employees were laid off from WooCommerce.
  • Teams from Tumblr, Day One, and Automattic’s AI divisions were also impacted.
  • A default severance package of 9 weeks’ pay has been offered.

Immediate Layoffs and Canceled Events

Employees reportedly lost access to Slack and internal systems immediately after receiving the layoff emails. Additionally, sources confirm that Automattic has canceled its 2025 Grand Meetup, an annual company retreat.

Despite these challenges, Mullenweg remains optimistic:

“We are confident that Automattic will emerge stronger, continuing our mission to democratize the internet.”

For more information, visit WooCommerce, Tumblr, or Automattic’s careers page for potential job opportunities.

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