WordPress.com owner Automattic is laying off 16 percent of workers
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Automattic, the parent company of WordPress.com, is laying off about 16 percent of its workers. In a memo posted to the companys website, CEO Matt Mullenweg says hes making the change to protect Automattics long-term future.Before the layoffs, Automattics website listed the company as having 1,777 employees. The company has since decreased its employee count to 1,495, meaning around 280 staff members were affected by the job cuts.Last year, the third-party hosting company WP Engine filed a lawsuit against Automattic and Mullenweg after the company blocked WP Engine from WordPress.orgs server and took over its Advanced Custom Fields (ACF) plugin. Mullenweg has stated that the legal battle could go on for years and could potentially bankrupt me or force the closure of WordPress.org.In October, Mullenweg offered his employees $30,000 or six months of salary to leave if they didnt agree with his decision to ignite a public dispute with WP Engine. Automattic shed around 8.4 percent of its workforce after the first round of buyouts.We have reached an important crossroads, Mullenweg writes in his memo. 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.
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