Automattic Begins Layoffs After Board Upheaval and Exits

Automattic begins layoffs across multiple teams Automattic, the parent company of WordPress.com, WooCommerce, Tumblr and other businesses, has begun cutting jobs, with insiders expecting further layoffs. The reductions have affected several parts of the company, including communications, social, WordPress.com and its VIP enterprise business. The cuts have been taking place over at least the past week. Automattic’s communications director, Megan Fox, announced her departure on LinkedIn last week, describing it as an “unexpected end” and saying her role had been “eliminated.” Sources also told TechCrunch that employees in marketing and product at WordPress.com have been let go this month. The company’s About page lists 1,397 staff members. However, insiders say the layoffs are likely to continue in stages over the months ahead. The plan, they say, is to spread the changes out rather than carry them out all at once. Automattic spokesperson Chenda Ngak said the company was “staggering our organizational changes to be more generous with severance and allow more time with each Automattician.” The moves come amid broader turmoil at the company, as employees brace for more cuts across its teams. Cuts follow board upheaval and executive departures The layoffs come amid turmoil following the board’s failed September effort to oust CEO Matt Mullenweg. The attempt resulted in a complete turnover of the board and departures of several executives, including the company’s CFO, interim CFO and chief legal officer. Automattic’s director of communications, Megan Fox, announced her departure on LinkedIn last week, describing it as an “unexpected end” and saying her role had been “eliminated.” Her post came as cuts were affecting the communications team, among others. Interim CFO Jeremy Klaperman also left earlier this month, just weeks after the board shake-up. Mullenweg later suggested on X that Klaperman may have been “offended” by the company’s decision to seek external candidates for the position. Internally, however, Mullenweg had asked him to reconsider leaving, according to sources who spoke with TechCrunch. The exits add to uncertainty as Automattic’s workforce faces cuts across multiple teams. The company has not publicly detailed how the leadership departures relate to the layoffs. CEO response and employee concerns After TechCrunch reported that interim CFO Jeremy Klaperman had left, Matt Mullenweg posted on X suggesting Klaperman may have been “offended” by Automattic’s decision to seek external candidates for the role. Internally, Mullenweg had asked him to reconsider leaving, according to sources. Screenshots viewed by TechCrunch showed that Mullenweg also posted in the company’s Slack about a recently departed executive’s spouse’s health matter. He said the company was not providing the executive with needed COBRA insurance and that the executive was threatening to sue. Mullenweg added that his own fiancée had been affected by the same condition. Some employees said they were shocked that he shared such private information in an internal forum. Asked about the layoffs last week, Mullenweg said terminations were not above the company’s normal numbers. On Wednesday, when asked about the growing total, he said he was “mostly focused on PHP,” referring to a PHP security issue that he had posted about on X. The remarks came as employees across teams were reportedly being let go, and some insiders said they expected further cuts. Staggered changes and financial context Automattic’s About page lists its staff at 1,397, though insiders told TechCrunch that layoffs may continue over the coming months. The reported plan is to spread out the cuts in the hope of improving the company’s Q4 revenue figures ahead of a debt renegotiation scheduled for June. The company has not provided a public tally of the departures. The reported cuts have affected teams including communications, social, WordPress.com and its VIP enterprise business, with sources also describing departures in marketing and product at WordPress.com. In a statement shared with TechCrunch, Automattic spokesperson Chenda Ngak explained why the changes are being staggered: “We’re staggering our organizational changes to be more generous with severance and allow more time with each Automattician.”