Automattic, the company that runs WordPress.com, Tumblr, and WooCommerce, is cutting jobs. The news broke in a blog post that said 16% of its staff would be affected. With around 1,744 employees listed, that means over 270 people may be losing their jobs—though Automattic hasn’t confirmed the exact number. Reports suggest it might be 281.
The layoffs are part of a "restructuring" effort. According to the company, this decision comes as a response to a tough market and rapidly changing technology. Over the past year, Automattic has faced challenges, including a high-profile legal battle with hosting provider WP Engine. CEO Matt Mullenweg believes WP Engine has not contributed enough to the WordPress community and that its branding has confused users about its relationship with WordPress.
In his announcement, Mullenweg emphasized that these layoffs will help Automattic be "more agile" and improve product quality. He explained that to better support customers, the company needs to boost productivity and profitability. Employees affected by the layoffs span across 90 countries. They will receive severance packages and assistance in finding new jobs.
This downsizing comes after Automattic canceled its annual “Grand Meetup” planned for 2025, reflecting the company’s shift in priorities.
The tech industry as a whole is feeling the impact of economic fluctuations. According to a recent survey by McKinsey, nearly 40% of tech companies have also laid off employees in the past year in response to changing market conditions. Many users took to social media to express their sadness over the layoffs, highlighting the strong sense of community within Automattic.
Mullenweg remains optimistic about the future, stating that despite these tough decisions, the goal of democratizing the internet remains strong.
For more details on the impact of layoffs in the tech industry, you can check out the latest report from TechCrunch.
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Source linkAutomattic,Layoffs,WordPress
