Automattic Lays Off 16% of Workforce: What It Means for the Company’s Future
In a surprising move, Automattic—best known for powering WordPress.com—has let go of 16% of its employees.
CEO Matt Mullenweg announced the decision, explaining that it’s part of a plan to improve productivity and increase the company’s ability to invest in future growth.
Here’s what’s going on 👇
📉 Why Automattic Made the Cut
Even though Automattic is still growing and profitable, the tech world is getting more competitive. According to Mullenweg, the layoffs are not about survival—they’re about becoming even more profitable and staying ahead.
In a company statement, he said:
“We’re at a key turning point. To better support our products and customers, we need to boost productivity, increase profitability, and strengthen our ability to invest.”
Six months ago, more than 8% of Automattic’s employees resigned, turning down severance packages. This latest round of layoffs hits even harder for those who stayed, believing in the company’s future.
👨💻 Software Engineers Affected
Many of the employees who were let go are software engineers, and some have started sharing their experiences on LinkedIn.
One former employee, Mike Straw—a Special Projects Engineer—posted:
“Hi everyone! I was part of a sizable group of folks that were suddenly laid off at Automattic today. So, I’m seeking a new role and would appreciate your support.”
He had recently shared his excitement about working at Automattic, making the layoff especially unexpected.
💡 What This Means for the Tech Industry
Automattic’s decision shows that even profitable tech companies are making tough choices to stay competitive.
- Companies are shifting focus from just growth to sustainable profitability
- Tech workers, especially in product and engineering, are facing more volatility
- This may become more common as businesses adapt to changing markets and AI-driven tools
✅ TL;DR
- 🔻 Automattic has laid off 16% of its workforce
- 💼 The move is aimed at boosting profits and productivity
- 👨💻 Many affected are engineers now looking for new roles
- 📉 Even growing companies are making tough calls to stay lean and future-ready
Bottom Line:
In today’s tech landscape, change can come quickly—even at companies that seem stable. For Automattic, this is a strategic move to sharpen its focus. For the employees affected, it’s a tough moment that also opens new doors.
