Automattic Initiates Layoffs Following Board Overhaul and Executive Resignations

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Automattic has started layoffs affecting multiple teams amid recent board turmoil and executive exits, aiming to improve finances before a debt renegotiation scheduled for June.

Automattic, the parent company of WordPress.com, WooCommerce, Tumblr, and other platforms, has begun implementing layoffs across several departments. Sources indicate that the workforce reductions have already impacted the communications team, social media staff, WordPress.com employees, and personnel in its VIP enterprise unit.

This wave of job cuts follows significant internal disruption stemming from a failed attempt by the board to remove CEO Matt Mullenweg in September. The upheaval culminated in a full turnover of board members as well as the departure of key executives, including the CFO, interim CFO, and chief legal officer.

Among those affected by the layoffs is Megan Fox, Automattic's director of communications, who announced her role was eliminated through a LinkedIn post describing her exit as an "unexpected end." The interim CFO, Jeremy Klaperman, left earlier in the month shortly after the board changes; Mullenweg suggested in a public comment that Klaperman was upset about the decision to seek candidates from outside the company for the permanent CFO position. Despite this, internal sources report that Mullenweg had asked him to stay.

Additional internal turbulence was reported when Mullenweg shared sensitive personal details about a recently departed executive on the company’s Slack channel, involving a health issue affecting the executive’s spouse and concerns over COBRA insurance coverage. This disclosure reportedly surprised some employees given the private nature of the information.

Insiders further revealed that layoffs have also touched marketing and product teams at WordPress.com. While Mullenweg initially downplayed the scale of the terminations, describing them as within normal ranges, he later appeared focused on addressing a pressing PHP security vulnerability.

Automattic currently lists approximately 1,397 employees globally. However, sources expect that layoffs will continue to be executed gradually over the coming months. This approach aims to provide more generous severance packages and extended transition times for departing staff while also improving the company’s financial outlook ahead of a scheduled debt renegotiation in June 2027.

An official statement from Automattic spokesperson Chenda Ngak confirmed that organizational changes are being staggered intentionally to balance operational needs with support for affected employees. These developments underscore a challenging period for Automattic as it navigates leadership changes, financial pressures, and strategic realignment.