Automattic has begun staff reductions across its communications, social, WordPress.com, and VIP enterprise divisions, with internal plans to spread cuts over months ahead of a June debt renegotiation, according to people familiar with the matter.
The layoffs unfold against a backdrop of executive upheaval. The company's board attempted to remove CEO Matt Mullenweg in September—a move that failed and triggered complete board turnover. The departures have continued: Megan Fox, director of communications, announced her resignation last week after her role was eliminated. Jeremy Klaperman, interim CFO, departed earlier this month following the board shake-up. The company's CFO and chief legal officer have also left recently.
Multiple insiders expect further cuts to affect marketing and product teams at WordPress.com.
When asked about the layoffs last week, Mullenweg said the terminations fell within Automattic's normal attrition rates. On Wednesday, he redirected focus to a PHP security issue affecting the broader internet.
Automattic's About page lists total staff at 1,397. A company spokesperson said the staggered approach was designed to provide more generous severance and allow additional transition time for departing employees.
The debt renegotiation in June represents a key financial milestone for the company. Automattic's cash position and ability to demonstrate revenue momentum heading into those talks will shape the terms available to the private company.
