WordPress parent Automattic lays off 16% of its workforce
What's the story
Automattic, the parent firm of WordPress, has announced a workforce reduction impacting nearly 16% of its staff. Over 280 employees across 90 countries have lost their jobs.
CEO Matt Mullenweg disclosed the decision in a memo shared on the company's website.
The layoffs are part of a restructuring effort to improve agility and focus on product quality.
The move comes as Automattic navigates through rapid technological advancements and stiff competition in the market.
Impact
Headcount down to 1,495
The company's headcount prior to layoffs was 1,777 but has now come down to 1,495. Mullenweg stressed the need to improve productivity and profitability for long-term success. He also noted that HR will reach out to those affected with financial and support benefits.
Support package
Laid-off employees to receive comprehensive support package
Laid-off workers will get a comprehensive support package, including severance pay and benefits, resources for job placement, and the option to keep their company laptops.
Mullenweg further clarified in his memo that the restructuring is aimed at making Automattic more agile and responsive.
He stressed the need of breaking down silos that have created inefficiencies within the organization.
Strategy
Shift toward enhancing product quality
Mullenweg also noted that Automattic is pivoting its focus toward improving product quality, choosing excellence over quantity.
He believes that creating a sustainable financial model is key to the company's long-term success.
"I'm confident we will come out of this situation in a better position, poised to create a vibrant, profitable, well-designed company that will continue our mission to democratize the internet," he added.