Automattic, the parent company of WordPress.com, WooCommerce, Tumblr, and others, has begun layoffs, and insiders say they are preparing for additional layoffs in the future.
For at least the past week, layoffs have affected the company’s communications team, social team, WordPress.com, and its VIP enterprise business.
These departures signify further turmoil within Automattic. The company’s team is still processing the impact of the board’s failed attempt in September to remove CEO Matt Mullenweg. That incident ultimately led to a complete overhaul of the board and triggered the departure of other executives, including the CFO, interim CFO, and general counsel.
Megan Fox, Head of Communications at Automattic, posted on LinkedIn last week about her departure, calling it an "unexpected end" and stating that her position had been "eliminated."
Meanwhile, following TechCrunch’s report that Automattic’s interim CFO, Jeremy Klaperman, stepped down earlier this month—just weeks after the board turmoil—Mullenweg posted on X, suggesting that Klaperman may have felt offended by the company’s decision to seek an external candidate for the role. However, TechCrunch reported that it had heard Mullenweg had internally asked Klaperman to reconsider his decision to leave.
According to screenshots reviewed by TechCrunch, Mullenweg also once shared personal information about a recently departed executive in the company’s internal Slack channel. The post referenced the executive’s spouse’s health condition and claimed the company had not provided the individual with the essential COBRA health insurance. Mullenweg stated that the executive subsequently threatened to file a lawsuit. Mullenweg also mentioned that his own fiancée is affected by the same health condition. Several employees told TechCrunch they were shocked that the CEO would share such private personal information in that context.
Throughout October, TechCrunch learned from multiple sources that other members of the Automattic team were also laid off, including employees in marketing and product roles at WordPress.com.
Last week, when asked about layoffs, Mullenweg said the number of terminations was not above the company’s normal level. On Wednesday, when questioned about the growing total of layoffs, Mullenweg said he was “primarily focused on PHP” that day. He had posted on X about a PHP security issue impacting the internet, stating that this matter had higher priority.
The company’s About page states that it has 1,397 employees. However, sources familiar with the matter told TechCrunch that the company is likely planning to gradually implement layoffs over the coming months, aiming to improve Automattic’s fourth-quarter revenue figures ahead of upcoming debt renegotiations in June next year.