WordPress maker Automattic lays off 16% of staff

Tech Crunch - Apr 2nd, 2025

Automattic, the company behind platforms like WordPress.com and Tumblr, announced a significant reduction in its workforce, impacting 16% of its staff across various divisions. This decision, revealed in a blog post by CEO Matt Mullenweg, affects over 270 employees based on a pre-layoff count of 1,744 workers. The layoffs are described as a necessary restructuring to keep pace with the rapidly evolving technology landscape and to better compete in the market. Mullenweg emphasized that the move will make the company more agile and efficient, focusing on improving product quality and ensuring long-term financial viability. Employees affected by the layoffs, spread across 90 countries, will receive severance packages and job placement assistance.

This development follows a challenging year for Automattic, marked by a contentious legal battle with hosting provider WP Engine, which led to some employee departures last fall. The dispute centered around WP Engine's perceived insufficient contribution to the WordPress.org open-source project and its use of the 'WP' brand, which Mullenweg argued misled consumers about its ties to WordPress. Despite these challenges, Mullenweg remains optimistic about Automattic’s future, expressing confidence in the company's ability to emerge stronger and continue its mission to democratize the internet. The story is still unfolding, with the industry watching closely how Automattic navigates these significant changes.

Layoffs Technology Industry Restructuring Automattic Word Press.Com Tumblr Woo Commerce Matt Mullenweg Wp Engine Legal Dispute

Story submitted by Fairstory

RATING

6.6

Fair Story

Consider it well-founded

The article provides a timely and clear account of Automattic's recent layoffs, capturing the main points and presenting the company's perspective. It effectively communicates the basic facts and rationale behind the decision, making it accessible to a general audience interested in tech industry developments. However, the article's reliance on internal sources and lack of diverse perspectives limit its depth and balance. The absence of independent verification and analysis weakens its overall accuracy and source quality, while additional context on the legal dispute and its implications could enhance the story's impact and engagement potential. Overall, the article serves as a straightforward report on a significant event but could benefit from a broader range of viewpoints and more in-depth exploration of the issues involved.

Accuracy

The story presents factual claims that appear to be generally accurate but require further verification. The claim that Automattic is laying off 16% of its workforce, impacting over 270 employees, is a central fact that the article attempts to substantiate by referencing the company's pre-layoff employee count. However, the lack of a direct confirmation from Automattic at the time of publication introduces some uncertainty. The article also accurately reports on Automattic's legal dispute with WP Engine, though it does not provide detailed evidence of how this directly influenced the layoffs. The CEO's statements about the layoffs' intended benefits are presented as factual, but they are inherently subjective and speculative, lacking independent corroboration.

Balance

The article primarily presents the perspective of Automattic's leadership, particularly CEO Matt Mullenweg, regarding the necessity and impact of the layoffs. While it provides a rationale for the layoffs from the company's standpoint, it does not include viewpoints from affected employees or industry analysts, which could offer a more balanced view. The absence of commentary from critics or independent experts limits the range of perspectives and may lead to a perceived bias towards Automattic's narrative.

Clarity

The article is written in a clear and straightforward manner, with a logical flow of information. It effectively communicates the main points, such as the reasons for the layoffs and the expected impact on the company. The language is neutral and factual, avoiding sensationalism. However, some sections could benefit from additional context or explanation, particularly regarding the legal dispute with WP Engine and its connection to the layoffs.

Source quality

The article relies heavily on information from an Automattic blog post and statements made by CEO Matt Mullenweg. While these are credible sources for the company's internal decisions, the lack of external sources or independent verification weakens the overall source quality. No third-party analysis or expert opinions are included to provide a more comprehensive view of the situation, which could enhance the article's reliability.

Transparency

The article clearly attributes information to specific sources, such as the Automattic blog post and statements from Matt Mullenweg. However, it does not disclose any potential conflicts of interest or the methodology used to gather information. The transparency of the article could be improved by providing more context about the sources and disclosing any limitations in the reporting process, such as the lack of response from Automattic regarding the number of affected employees.