Automattic, the company behind WordPress.com, is cutting 16% of its staff to safeguard its future. CEO Matt Mullenweg shared the news in a memo, explaining that the decision was made to ensure long-term stability.
Before the layoffs, Automattic had 1,777 employees. The company now has 1,495 employees, meaning about 280 workers were let go.
The layoffs come amid an ongoing legal battle with WP Engine, a third-party hosting company. WP Engine sued Automattic and Mullenweg after being blocked from WordPress.org’s server and losing control of its Advanced Custom Fields (ACF) plugin. Mullenweg has warned that the lawsuit could last for years and might even force WordPress.org to shut down.
Back in October, Mullenweg offered employees $30,000 or six months’ salary to leave if they didn’t support his decision to publicly challenge WP Engine. This led to an earlier reduction of about 8.4% of the workforce.
“We are at a crucial turning point,” Mullenweg said in his memo. “Our revenue is growing, but we face intense competition, and technology is advancing rapidly. To better serve our users and strengthen our business, we need to boost efficiency, profitability, and investment capacity.”
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