Automattic expands layoffs after board shakeup and executive exodus
Automattic, parent of WordPress.com, is implementing new layoffs affecting communications, social, and VIP enterprise teams following a September board turnover. The cuts follow the failed attempt to oust CEO Matt Mullenweg and the departure of key executives, including the CFO and Chief Legal Officer. Insiders anticipate further reductions, signaling ongoing instability within the company as it restructures its leadership and operational teams.
Key points
- Automattic, the parent company of WordPress.com and WooCommerce, has begun layoffs impacting its communications, social, and VIP enterprise teams.
- The cuts follow a September board turnover triggered by a failed attempt to oust CEO Matt Mullenweg, which also led to the departure of the CFO and Chief Legal Officer.
- Director of Communications Megan Fox described her role as 'eliminated' on LinkedIn, while interim CFO Jeremy Klaperman left weeks after the board shakeup.
- CEO Matt Mullenweg publicly suggested Klaperman was 'offended' by the search for external candidates, though internal reports indicated Mullenweg had asked him to stay.
- Insiders report that the company is bracing for additional cuts, indicating the restructuring is ongoing rather than a one-time event.
- Mullenweg recently shared personal details about a departing executive's spouse's health and COBRA insurance in an internal Slack message, adding to internal tension.
Automattic, the developer behind WordPress.com, WooCommerce, and Tumblr, has initiated a new round of layoffs affecting its communications, social, and VIP enterprise divisions. These reductions follow a period of significant internal turmoil that began in September when the company’s board attempted to remove CEO Matt Mullenweg. That effort resulted in a complete board turnover and the departure of several senior executives, including the Chief Financial Officer and Chief Legal Officer.
The latest cuts have impacted key operational teams, with the Director of Communications, Megan Fox, announcing her departure on LinkedIn as an "unexpected end" where her role was eliminated. Additionally, interim CFO Jeremy Klaperman left the company just weeks after the board shakeup. Mullenweg recently took to X to suggest that Klaperman may have been "offended" by the decision to seek external candidates for the role, although internal sources indicate Mullenweg had privately asked Klaperman to reconsider his departure.
Tensions within the company have been further highlighted by Mullenweg’s recent internal communications. According to screenshots viewed by TechCrunch, he shared personal details about a recently departed executive in the company’s Slack channel, specifically noting that the executive’s spouse was facing health issues and that the company was not providing sufficient COBRA insurance coverage. Insiders indicate that the workforce is bracing for further reductions, suggesting that the restructuring process is still in its early stages as the company stabilizes its leadership and operational structure.
Sources
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