Automattic begins layoffs amid board crisis and executive exodus
What's the story
Automattic, the parent company of popular platforms like WordPress.com, WooCommerce, and Tumblr, has started laying off employees., according to Techcrunch. The cuts have affected various teams including communications, social media, WordPress.com itself, and its VIP enterprise business. The move comes after a failed attempt by the board to remove CEO Matt Mullenweg last month which led to a complete board turnover and other executive departures.
Executive exits
Major departures at the executive level
Megan Fox, Automattic's Director of Communications, announced her exit on LinkedIn last week. She described it as an "unexpected end" and revealed that her position had been "eliminated."
The company's interim Chief Financial Officer Jeremy Klaperman also left earlier this month after the board shakeup.
Mullenweg suggested Klaperman may have been "offended" by the company's decision to look for external candidates for the role.
Internal conflict
Controversial comments by Mullenweg
In an internal company Slack post, Mullenweg shared private information about a health issue affecting the spouse of one of the departed executives.
He claimed that the company was not providing COBRA insurance to this person and that they were threatening to sue over it.
This revelation shocked some employees who were taken aback by Mullenweg's decision to share such personal details in an internal forum.
Wider impact
Marketing and product teams affected
Reports have emerged that employees from Automattic's marketing and product teams at WordPress.com have also been laid off.
Despite the rising number of layoffs, Mullenweg maintains that these terminations are not beyond the company's normal limits.
He recently said he was "mostly focused on PHP," referring to a security issue affecting the internet, which is currently taking precedence over other matters.
Information
Website shows no sign of layoffs
Despite the layoffs, Automattic's official website still lists a total staff count of 1,397. Insiders say that the company plans to stagger these layoffs over the coming months. This strategy is aimed at improving Automattic's Q4 revenue figures ahead of an upcoming debt renegotiation.