Automattic, the parent company of WordPress.com, WooCommerce, and Tumblr, has begun laying off employees across several departments following a leadership dispute involving CEO Matt Mullenweg. The cuts have affected communications, social media, marketing, product development, and its VIP enterprise business, with employees expecting further reductions in the coming months.
The layoffs, reported on October 21, follow a September boardroom dispute that briefly removed Mullenweg from his position before he returned as CEO. The incident resulted in a complete board turnover and the departures of several senior executives, including the company’s chief financial officer and chief legal officer.
Automattic Cuts Jobs Across Multiple Departments
Automattic’s director of communications, Megan Fox, confirmed her departure in a LinkedIn post, describing it as an unexpected end to her employment. She said her position had been eliminated as part of the company’s organizational changes.
Other employees affected by the layoffs reportedly worked in WordPress.com’s marketing and product teams, its social media operations, and its VIP enterprise services. Automattic has not disclosed the total number of positions eliminated, although its website lists approximately 1,397 employees.
When asked about the layoffs, Mullenweg initially said the terminations were consistent with the company’s normal staffing changes. In a subsequent response, he said his immediate attention was focused on critical PHP security vulnerabilities affecting websites.
Automattic spokesperson Chenda Ngak confirmed that the company was implementing organizational changes in stages. She said the approach was intended to provide more generous severance arrangements and allow additional time for affected employees.
Layoffs Follow Board Dispute and Executive Departures
The workforce reductions follow a September incident in which Automattic’s board voted to place Mullenweg on paid leave. He returned approximately 33 hours later, after which the directors involved in the decision departed.
Chief financial officer Mark Davies and chief legal officer Andy Missan also left the company. Interim CFO Jeremy Klaperman subsequently departed in October, only weeks after the leadership changes.
Mullenweg later commented on Klaperman’s departure, suggesting that the executive may have objected to Automattic’s decision to consider external candidates for the permanent CFO position. However, internal sources told TechCrunch that Mullenweg had previously asked Klaperman to reconsider leaving.
TechCrunch also reported that Mullenweg shared private information about a former executive’s family circumstances and a potential dispute over health insurance in an internal Slack channel. Some employees expressed concern about the disclosure of personal information.
Employees Expect Further Cuts Ahead of Debt Negotiations
According to people familiar with Automattic’s internal plans, additional layoffs could be distributed over the coming months rather than conducted in a single large reduction. They suggested the changes could help improve the company’s fourth-quarter financial performance ahead of a debt renegotiation scheduled for June 2027.
Automattic has not confirmed that financial considerations are driving the timing of the reductions. The company previously reduced its workforce by approximately 16% in April 2025, citing the need to improve productivity, profitability, and operating efficiency.
Featured image credits: Wikimedia Commons
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