Here's why Tumblr is excessively downsizing staff
A leaked internal communication from Tumblr's parent company, Automattic, has disclosed most of its 139 employees will be reassigned to different projects within the organization. Automattic CEO Matt Mullenweg said "the majority" of Tumblr's non-support, safety, and moderation staffers would shift to "other divisions." Despite boasting 135 million monthly active users, the platform seemingly hasn't met anticipated revenue and growth targets. The memo indicated their next move is to "reflect and decide where else we should concentrate our energy together."
Platform witnessing stagnant growth
Tumblr is adjusting its ambitions following a shortfall in achieving targets. The platform is planning to relocate certain staff members to other divisions within its parent company, Automattic. Despite endeavors such as Live, Blaze (a sponsored post feature), an ad-free subscription, and Post Plus (a paid content feature), Tumblr's success with these monetization strategies seems mixed. Tumblr is the latest on the list of social media platforms grappling with challenges related to both monetization strategies and strategic focus.
Tumblr continues to face competition from rivals
In July, Automattic unveiled a significant revamp strategy for Tumblr, with the goal of enhancing its algorithmic ranking capabilities across all feeds and simplifying the process for users to discover thriving communities on the platform. However, these plans have now been rendered futile due to the recent staff reassignments. To recall, Automattic purchased Tumblr from Verizon in 2019 but has since faced challenges in revitalizing the social media platform amid competition from rivals like X and now Threads.
Skeleton crew to oversee microblogging site
According to Automattic's internal communication, a skeleton staff comprised of Trust & Safety and support personnel will remain to manage Tumblr after most of its employees are transferred to other projects. This move represents a stark departure from previous plans to integrate a TikTok-style algorithmic feed into the aging site. While this might not signify the end of Tumblr, it does raise concerns about the platform's future potential.
Automattic's other brands and projects
In addition to Tumblr, Automattic owns several other brands and ventures, such as the popular blogging tool WordPress, the journaling application Day One, the WooCommerce e-commerce plugin, the note-taking app SimpleNote, and Gravatar. Interestingly, the company has chosen not to lay off any Tumblr employees during this transition, opting to reassign them instead to work on these other projects within the parent organization.
