Automattic, the company behind WordPress.com, WooCommerce and Tumblr, has started laying off employees across several teams, with more job cuts expected in the coming months, according to a TechCrunch report citing people familiar with the matter.
The layoffs over at least the past week have affected employees in communications, social media, WordPress.com and its VIP enterprise business. The company has not publicly confirmed the full extent of the cuts.
The job cuts have reportedly spread across several divisions, including communications, social media, WordPress.com and the company’s VIP enterprise unit. Automattic has yet to disclose how many employees have been affected.
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Megan Fox, Automattic’s director of communications, announced her departure on LinkedIn last week, describing it as an “unexpected end” after her position was “eliminated.”
The company has also faced changes in its finance leadership. Earlier this month, TechCrunch reported that interim CFO Jeremy Klaperman had left the company just weeks after the boardroom upheaval. Mullenweg subsequently suggested in a post on X that Klaperman may have been “offended” by Automattic’s decision to consider external candidates for the position. However, according to TechCrunch, Mullenweg had privately asked Klaperman to reconsider his departure.
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Automattic’s website lists its workforce at 1,397 employees. However, people familiar with the company’s plans told TechCrunch that the layoffs could be spread over several months rather than carried out all at once.
The reported strategy comes as Automattic prepares to renegotiate its debt in June. Phasing in the job cuts could help the company improve its fourth-quarter revenue figures ahead of those discussions.
The developments mark another difficult period for the company, which operates several major online publishing and e-commerce platforms. With further reductions reportedly on the horizon, employees could face continued uncertainty as Automattic works through its leadership changes and financial priorities.