Automattic, the parent company of WordPress.com, is laying off about 16% of its workforce. CEO Matt Mullenweg says he's making the changes to "protect Automattic’s long-term future," The Verge reports.
Before the layoffs, Automattic's website listed the company as having 1,777 employees. The number of employees has now been reduced to 1,495.
Last year, third-party hosting provider WP Engine filed a lawsuit against Automattic and Mullenweg after the company blocked WP Engine from accessing WordPress.org’s server and took control of its Advanced Custom Fields (ACF) plugin. Mullenweg said the lawsuit could drag on for years and even put WordPress at risk of bankruptcy.
In October 2024, Mullenweg offered employees $30,000 to quit if they did not support his decision to incite a public dispute with WP Engine. After the first round of buyouts, Automattic lost approximately 8.4% of its staff.
"While our revenue continues to grow, Automattic operates in a highly competitive market, and technology is evolving at unprecedented levels. To support our customers and products, we must improve our productivity, profitability, and capacity to invest, " Mullenweg wrote in a letter to employees.