Automattic Lays Off Staff Across Multiple Teams Amid Financial Pressures and Leadership Turmoil

Automattic, the parent company of WordPress.com, WooCommerce, and Tumblr, began laying off employees in October 2026 across several teams, including communications, social, WordPress.com, and its VIP enterprise business. Insiders say more cuts are expected in the months ahead.

The layoffs follow a period of significant leadership instability. In September 2026, Automattic’s board attempted — and failed — to remove CEO Matt Mullenweg, an effort that resulted in a complete board turnover. In the aftermath, the company’s CFO, interim CFO, and Chief Legal Officer all departed. Director of Communications Megan Fox also announced her exit on LinkedIn, describing it as an “unexpected end” and confirming her role had been “eliminated.”

Interim CFO Jeremy Klaperman left earlier in October, just weeks after the board shakeup. Mullenweg publicly suggested on X that Klaperman may have been “offended” by the company’s decision to seek external candidates for the CFO role — though sources told TechCrunch that Mullenweg had privately asked Klaperman to reconsider leaving. Mullenweg also drew internal criticism after sharing personal health information about a recently departed executive in the company’s Slack, including details about the executive’s spouse and a dispute over COBRA insurance coverage. Employees described the disclosure as shocking.

When asked about the layoffs last week, Mullenweg said the terminations were not above normal numbers. Asked again on Wednesday as the total grew, he said he was “mostly focused on PHP,” referencing a security issue he had posted about on X.

Automattic currently lists 1,397 employees on its About page. According to insiders, the plan is to spread layoffs over coming months to improve Q4 revenue figures ahead of a debt renegotiation scheduled for June 2027. The ongoing cuts may signal continued financial strain at the company as it navigates leadership changes and restructuring.