Automattic, the parent company of WordPress.com, is reducing its workforce by 16 percent, a decision CEO Matt Mullenweg attributes to securing the company’s long-term prospects in a memo published on Automattic’s website.
Prior to the layoffs, Automattic reported 1,777 employees; the company’s updated count is 1,495, indicating roughly 280 positions were eliminated.
A lawsuit was filed last year by WP Engine against Automattic and Mullenweg after Automattic blocked WP Engine from WordPress.org’s server and took control of its Advanced Custom Fields (ACF) plugin. Mullenweg noted the legal proceedings could extend for years with consequences that “could potentially bankrupt me or force the closure of wordpress.org.”
In October, Mullenweg offered employees $30,000, or six months’ salary, to resign if they disagreed with his choice to publicly challenge WP Engine. Automattic’s workforce decreased by about 8.4 percent following the initial buyouts.
“We have reached an important crossroads,” Mullenweg writes. “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.”
