San Francisco, California-based Automattic, a software development company specializing in online services, has announced a restructuring that will result in a 16%reduction in its workforce across all departments.
The personnel realignment will impact 281 employees.
According to CEO Matt Mullenweg,,,
I have had to make difficult decisions to protect Automattic’s long-term future. This post will outline why the changes are happening and the next steps in our organizational restructuring. I wish to be transparent and acknowledge immediately that this will be difficult news to hear. We will do everything to ensure that all Automatticians, those staying and those leaving, are supported.
Why We’re Making Changes
We have reached an important crossroads. While our revenue continues to grow, Automattic operates in a highly competitive market, and technology is evolving at unprecedented levels. To support our customers and products, we must improve our productivity, profitability, and capacity to invest.
As difficult as this decision has been, we are restructuring the company to:
Become more agile and responsive.
Break down silos that have created inefficiencies.
Focus on product quality, doing fewer things better.
Ensure a viable financial model for long-term success.
What This Means
This restructuring will result in an approximately 16% workforce reduction. HR will email those impacted to inform them they will leave Automattic with financial and support benefits.
Supporting Those Affected
This process is complex with Automatticians in 90 countries, but we’re committed to communicating clearly and compassionately. Colleagues who will be leaving will receive:
A comprehensive package covering severance pay and benefits.
Retention of company laptops.
Job placement resources.
They also have our enduring gratitude for their time with the company.
Looking Forward
Automattic has multiple products with world-touching potential in WordPress and beyond. 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. I would ask that you take a moment to thank and appreciate the efforts of your teammates who have left the company, reflect on how you will move forward as an individual and Automattician, and join me in the vital work we have in front of us. I recognize this is a difficult time. In the coming weeks, we’ll share more about our path forward and how we’ll work together to strengthen our company.
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. We see good people being laid off through no fault of their own. Just because something terrible hasn't happened yet doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. While many employees can read the writing on the wall, why do most assume it’s targeted at someone else? Are you now wondering, Am I Next?
