Automattic begins layoffs following board upheaval and executive departures
Automattic has begun laying off employees across multiple teams, including WordPress.com and its enterprise business, following a board shakeup and a series of executive departures. Sources say more cuts could follow as the company looks to improve its finances.
Automattic, the parent company of WordPress.com, WooCommerce, and Tumblr, has initiated layoffs, with more cuts expected. The company has been affected by a tumultuous period, including a failed attempt to remove CEO Matt Mullenweg from his position in September. This led to a complete board turnover and the departure of several executives, including the CFO, interim CFO, and Chief Legal Officer.
Megan Fox, Automattic's Director of Communications, announced her departure on LinkedIn, stating it was an "unexpected end" and that her role had been eliminated. After TechCrunch reported that interim CFO Jeremy Klaperman had left the company, Mullenweg suggested Klaperman might have been offended by Automattic's decision to seek external candidates for the role. However, Mullenweg had reportedly asked Klaperman to reconsider his decision.
At one point, Mullenweg shared personal information about a recently departed executive on Automattic's internal Slack, which included details about the person's spouse's health condition. He claimed the company was not providing the individual with necessary COBRA insurance. Mullenweg also revealed that his fiancée faced the same health issue. This led to shock among some employees when they found out the CEO shared such private information.
Throughout the month, various sources indicated that Automattic's team had experienced further lay-offs, including members from marketing and product at WordPress.com. When asked about the growing total of layoffs, Mullenweg claimed that the terminations were consistent with the company's normal numbers. However, when asked about the total count of staff, Mullenweg said that his focus was currently on PHP, a security issue affecting the internet.
The company's About page lists a total staff count of 1,397, but insiders believe that the plan is to spread out the layoffs over the coming months to improve Q4 revenue figures ahead of a debt renegotiation scheduled for June.
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