Automattic, which owns popular platforms such as WordPress.com, WooCommerce, Tumblr and Pocket Casts, went to a serious shrinkage in its global staff. Matt Mullenweg, CEO of the company, announced that this decision was aimed at protecting Automattic’s long -term future. According to the official statement, 280 employees were separated and 16 percent of the total workforce was reduced. This step is considered as a reflection of the effort to simplify the internal structure and to be agile in the face of competition.
Before the layoffs, the number of employees of Automattic seemed to be 1,777. According to the updated data, this number has fallen to 1,495. This means that approximately 280 people have been terminated. The company has made operational efficiency prioritizing with increasing digital competition and technological transformation pressure, especially in the last two years.
Although the company’s revenues continue to increase, Mullenweg said that the company should be more aggressive in productivity and profitability in order to maintain its competitiveness. According to him, technology evolves at an unprecedented speed in the past, and this speed requires companies to make radical changes in organizational structures. For this reason, the decision to dismiss is not only about cost; It also means a strategic restructuring. It is estimated that most of the layoffs are among the support and product development teams.
In addition to all these, Automattic had a similar fluctuation last year. With the voluntary departure proposal to employees in the late 2024, the company lost 8.4 percent of the labor force. Mullenweg said that they had prepared this offer to separate ways more friendly with employees who did not share the vision of the company. According to the proposal, employees had a payment of either 30 thousand dollars or six -month salaries.
The only tension in which the company experiences is not internal; The pressures from the external environment have left Automattic in a difficult situation. In 2023, he filed a lawsuit against WP Engine, Automattic and CEO Mullenweg. The case was caused by blocking WP Engine’s access to WordPress.org and the control of the Advanced Custom Fields (ACF) plug -in control. This development shows that the company is not only financial but also legally under a serious burden.
According to Mullenweg’s statement, the ongoing case may continue for many years and can personally put himself in a financial stalemate and cause the activities of WordPress.org to stop. However, the company is determined to continue its way. Automatic’s management emphasizes that such uncertainties go to the organizational structure in order to prevent damage to the company’s vision. Despite everything, it is stated that product development processes and community support will be maintained.
On the other hand, it is estimated that the company’s direct focus on consumer products will be seen. Strategic investments continue in income products such as WooCommerce, and personnel loss in these areas is less. Mullenweg argues that such projects are basic building blocks that will finance the future growth of the company. For this reason, the layoffs focused mainly in support and administrative roles.
Automattic is not the only company going to shrink
Disperations are not only specific to Automattic. Similar tables dominate the entire technology sector. Giants such as Meta, Amazon, Google and Microsoft are known to have separated their ways with thousands of employees in the last year. The fact that the growth period is replaced by more cautious and productivity -oriented strategies after the pandemi leads to an increase in such decisions.
Automattic’s decision is not only a defense against today’s conditions; It is also considered as an attempt to take a position for the future. With a simpler staff structure, the company aims to respond faster to innovative solutions and customer needs. In any case, the sustainability of open source communities, such as WordPress ecosystem, requires carefully balancing such restructuring decisions.