In a surprising move that’s raised eyebrows across the tech world, Automattic - best known as the company behind WordPress.com, WooCommerce, and Tumblr - has laid off approximately 16% of its workforce. The decision, announced by CEO Matt Mullenweg, comes at a time when the company is not in crisis, but rather experiencing growth and profitability. So why the layoffs?
A Calculated Move, Not a Desperate One
Unlike many tech layoffs we've seen over the past year, which were largely driven by economic uncertainty or declining revenue, Automattic’s decision stems from a desire to "improve productivity, profitability, and capacity to invest." In other words, this isn’t about weathering a storm—it’s about tightening the sails during clear skies to go even faster.
In an internal statement, the company noted:
“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. To support our customers and products, we must improve our productivity, profitability, and capacity to invest.”
This is a key insight: Automattic isn’t trimming fat to survive - it’s optimizing to compete more aggressively. With AI reshaping everything from content creation to ecommerce, and rivals innovating faster than ever, Automattic seems to be repositioning itself for what it believes is the next big leap.
The Human Cost of Strategic Restructuring
That said, strategic moves like this always come at a cost - especially for the employees who were let go. Some of those impacted had chosen to stay with the company just six months ago, when Automattic offered voluntary severance packages. Many declined at the time, believing in the company’s future and culture.
Now, they find themselves caught in a wave of layoffs they didn’t see coming.
On LinkedIn, former Automattic software engineer Mike Straw, part of the affected group, shared:
“Hi everyone! I was part of a sizable group of folks that were suddenly laid off at Automattic today. So, I’m seeking a new role and would appreciate your support. If you hear of any opportunities or just want to catch up, please send me a message or comment below. I’d love to reconnect. #OpenToWork”
What makes this all the more poignant is that just three weeks earlier, he had posted something far more optimistic, unaware of what was coming.
What This Means for the Industry
This move by Automattic may signal a broader shift in how even profitable tech companies are viewing their teams—not just in terms of output, but in terms of strategic alignment and return on investment. In a world where “doing more with less” is becoming a mantra, we may see more tech giants following suit: streamlining not because they have to, but because they believe they’ll come out stronger on the other side.
It also raises a broader question about workplace culture. Automattic has long been viewed as a model for distributed teams and employee freedom. Layoffs of this magnitude, even for growth-oriented reasons, may shake that perception and lead to tougher conversations about loyalty, transparency, and long-term career security in tech.
