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Automattic layoffs loom amid board shakeup and exec exits
22 Oct
Summary
- Automattic is undergoing layoffs impacting multiple teams.
- A recent board shakeup led to executive departures.
- CEO shared sensitive personal information on internal Slack.
Automattic, the company behind WordPress.com, WooCommerce, and Tumblr, is currently implementing layoffs. These workforce reductions have affected teams such as communications, social media, and its enterprise business. This round of departures comes after a tumultuous period for the company, including a failed attempt in September to remove CEO Matt Mullenweg from the board.
The board's shakeup led to a complete turnover and the subsequent exits of key executives, including the CFO and Chief Legal Officer. Megan Fox, Director of Communications, announced her role was eliminated. Concerns have also arisen regarding CEO Matt Mullenweg's use of the company's internal Slack, where he reportedly shared sensitive personal health information about an employee and their spouse, leading to employee shock.
Insiders suggest these layoffs may continue over the coming months. The company's aim is to improve its fourth-quarter revenue figures, which could be crucial ahead of a debt renegotiation scheduled for June. Automattic currently lists 1,397 staff members, but further reductions are anticipated as the company navigates these financial and internal challenges.
