Automattic, the parent company behind WordPress, has initiated a workforce reduction affecting 16% of its staff, effective immediately. Affected employees were notified via email and saw their access to internal systems, such as Slack, revoked instantly—a move that impacted several long-tenured staff members with over a decade of service at the organization.
Operational Shifts and Canceled Retreats
This restructuring follows the company’s decision to cancel its annual “Grand Meetup” retreat previously scheduled for 2025, signaling a broader shift in Automattic’s operational strategy.
Impact Across Departments and Products
Internal reports indicate that the layoffs have hit various divisions across the company. WooCommerce appears significantly affected, with sources noting over 100 job losses within that specific organization. Other key business units, including Tumblr, Day One, and the company’s AI initiatives, have also faced staff reductions. The impact on the Day One team was particularly severe, with sources describing the division as being effectively “gutted.”
In the United States, the cuts spanned a wide range of functions, including product management, design, sales, marketing, account management, community support, and business operations. The advertising department was also heavily impacted, leaving only 16 of its original 50 employees.
Dispute Over Severance Packages
Initial reports suggested that the company offered a default severance package of nine weeks, with adjustments for international employees in regions with stricter labor laws. However, Automattic has since contested these figures.
“The public statements regarding the size of the severance packages are not true,” the company stated. “We’re committed to handling all employment matters with integrity and fairness, aligning with our core operating values. Those impacted have our enduring gratitude for their time with the company and we wish them well.”
