Automattic, the parent company of WordPress.com, WooCommerce, and Tumblr, has initiated layoffs amid internal upheaval involving the board and executive ranks. The cuts have affected teams across communications, social media, WordPress.com, and the VIP enterprise division. These changes follow a turbulent period capped by a failed attempt to remove CEO Matt Mullenweg in September, which led to a complete overhaul of the board and several top executives, including the company’s CFO, interim CFO Jeremy Klaperman, and chief legal officer, departing.

Among recent departures, Megan Fox, Automattic’s director of communications, revealed her position was eliminated unexpectedly. Mullenweg publicly commented on Klaperman’s exit, hinting it might have stemmed from disagreement over bringing in external candidates for the CFO role, although he had privately urged Klaperman to stay. Tensions also surfaced internally when Mullenweg posted sensitive details on Slack about a former executive’s health insurance dispute, causing unease among employees over the sharing of private information in such a forum.

Sources indicate additional cuts have impacted marketing and product teams within WordPress.com, and insiders expect further layoffs in the coming months. While Mullenweg maintained that these terminations were within normal limits, the company appears to be spacing out layoffs to provide more generous severance and to mitigate disruption. This strategic pacing aims to improve Automattic’s financial standing in advance of a debt renegotiation scheduled for June 2027.

Currently, Automattic lists about 1,397 employees, but growing internal changes reflect broader financial pressures and leadership instability. A company spokesperson confirmed the restructuring is staggered to balance workforce impacts and severance terms. As the company navigates through executive shifts and workforce reductions, its focus remains split between managing these organizational changes and responding to an urgent PHP security issue that recently emerged.