Wordpress is firing 16% of its employees. (1 Viewer)

[Cpvr]

Wordpress has recently made the decision to fire 16% of their employees. It's a possibility that they're current lawsuit with Wp engine may have something to do with, or they're just laying off employees to save some money.

But without further ado, here's the news post from their official blog:
Earlier today, CEO Matt Mullenweg shared with Automattic employees the following message.

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I have had to make difficult decisions to protect Automattic’s long-term future. This post will outline why the changes are happening and the next steps in our organizational restructuring. I wish to be transparent and acknowledge immediately that this will be difficult news to hear. We will do everything to ensure that all Automatticians, those staying and those leaving, are supported.

Why We’re Making Changes​

We have reached an important crossroads. While our revenue continues to grow, Automattic operates in a highly competitive market, and technology is evolving at unprecedented levels. To support our customers and products, we must improve our productivity, profitability, and capacity to invest.

As difficult as this decision has been, we are restructuring the company to:

• Become more agile and responsive.
• Break down silos that have created inefficiencies.
• Focus on product quality, doing fewer things better.
• Ensure a viable financial model for long-term success.

What This Means​

This restructuring will result in an approximately 16% workforce reduction. HR will email those impacted to inform them they will leave Automattic with financial and support benefits.

Supporting Those Affected​

This process is complex with Automatticians in 90 countries, but we’re committed to communicating clearly and compassionately. Colleagues who will be leaving will receive:

• A comprehensive package covering severance pay and benefits.
• Retention of company laptops.
• Job placement resources.

They also have our enduring gratitude for their time with the company.

Looking Forward​

Automattic has multiple products with world-touching potential in WordPress and beyond. I’m confident we will come out of this situation in a better position, poised to create a vibrant, profitable, well-designed company that will continue our mission to democratize the internet. I would ask that you take a moment to thank and appreciate the efforts of your teammates who have left the company, reflect on how you will move forward as an individual and Automattician, and join me in the vital work we have in front of us. I recognize this is a difficult time. In the coming weeks, we’ll share more about our path forward and how we’ll work together to strengthen our company.

We understand that you may wish to access support and discuss this with those close to you. I’d like to remind you that Automattic partners with Workplace Options, which provides emotional and practical well-being support if you seek advice from an external provider.

• [links to resources for employees, redacted]

As always, your HR Wranglers are here to talk with you and support you.


Source: https://automattic.com/2025/04/02/restructuring-announcement/


What are your thoughts? Do you think the lawsuit has anything to do with their employees behind laid off or not really?

 

[Ravenfreak]

16% seems like a small number. It could be from the lawsuits, they lost some money so they can't pay those people they're laying off. Either way it sucks for those who are getting laid off. Is this also the reason why they're not going to have any more large updates this year?