Automattic, the parent company of WordPress.com, Tumblr, and WooCommerce, has announced a significant workforce reduction, impacting 16% of its global staff. The decision, revealed in a memo by CEO Matt Mullenweg, comes as the company navigates a competitive market and rapid technological advancements.
The layoffs, affecting over 280 employees across 90 countries, are part of a restructuring effort aimed at enhancing agility, breaking down inefficiencies, and focusing on product quality. Mullenweg emphasised the importance of improving productivity and profitability to ensure long-term success. The company's headcount before the layoffs stood at 1,777 but is now down to 1,495.
“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,” he stated in the memo. HR will email those impacted to inform them they will leave Automattic with financial and support benefits, the memo further noted.
Laid off employees will get a comprehensive package covering severance pay and benefits, job placement resources and will get to retain the company laptops, the CEO told employees in the memo.
“To support our customers and products, we must improve our productivity, profitability, and capacity to invest,” added Mullenweg.
He further said that restructuring the company is being done to become more agile and responsive. The company further said that it is important to break down silos that have created inefficiencies. The company’s shift toward enhancing product quality, prioritizing excellence over quantity. Moreover, as per Mullenweg, establishing a sustainable financial model is essential to ensure the company’s long-term success.
“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 democratise the internet,” he added.
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