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Startups & Technology

Automattic staff bracing for further cuts following executive exodus

The company behind WordPress.com and Tumblr has initiated a series of layoffs affecting its communications, marketing, and enterprise divisions. These staff reductions follow a volatile period marked by a failed attempt to oust CEO Matt Mullenweg and a subsequent total turnover of the firm’s board of directors.

Automattic staff bracing for further cuts following executive exodus

The departures have already hit key departments, including the VIP enterprise business and product teams at WordPress.com. Internal sources suggest these cuts are part of a broader strategy to bolster Q4 revenue figures, potentially positioning the company for debt renegotiations scheduled for June. While CEO Matt Mullenweg characterized the terminations as consistent with normal attrition, employees remain unsettled by the company’s current trajectory.

The organizational instability intensified throughout September, leading to the exit of the CFO, the interim CFO, and the Chief Legal Officer. Tensions within the company reached a peak when Mullenweg shared sensitive, personal details regarding a former executive’s spouse in an internal Slack channel. Employees described the move as deeply unprofessional, especially as it involved a dispute over health insurance coverage. As the company navigates this transition, internal morale continues to decline, with staff expecting further reductions in the months ahead.

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