Automattic has laid off 16% of its global workforce — around 280 people — in a move that came without warning and hit employees across 90 countries on Wednesday.

The cuts follow months of turmoil inside the company as tensions over CEO Matt Mullenweg’s handling of the company’s legal battle with WP Engine continue to reshape the organization from the inside out.

As of March 30, Automattic’s website listed 1,774 employees. By Wednesday afternoon, that number had dropped to 1,495. The company hasn’t confirmed how many people were let go, but TechCrunch reports 281.

In a message posted on Automattic’s blog and shared with employees early on Wednesday, Mullenweg said the “restructuring” was necessary to “improve productivity, profitability, and capacity to invest.” He said the move would help the company become “more agile and responsive,” “break down silos that have created inefficiencies,” “focus on product quality, doing fewer things better,” and “ensure a viable financial model for long-term success.”

“I have had to make difficult decisions to protect Automattic’s long-term future,” Mullenweg said.

But former employees say the cuts were abrupt, impersonal, and out of step with the company’s values. There was no advance notice. Access was revoked without warning, and many employees found out via messages sent to their personal email after the fact.

“In my case, I was working and having a conversation with my lead over Slack,” one former employee told The Repository, speaking on condition of anonymity. “I got up to microwave a quick lunch and came back to find all my access was revoked and an email about being laid off in my personal inbox.”

They said nearly everyone on their team was let go, including their lead — who was also blindsided. “People were laid off while on parental leave, sick leave, sabbatical — even while attending team meetups in other countries,” they said.

Automattic hasn’t disclosed what severance was offered in this latest round. Mullenweg’s message to staff only says employees will receive a “comprehensive package” with job placement support and the ability to keep their laptops.

The employee, who had spent more than five years at Automattic, said they were offered just nine weeks’ severance — the same amount offered to a colleague who had been with the company 15 years. They said they had spoken to many others who’d been let go and hadn’t heard of anyone receiving a higher offer.

“It’s an absolute slap in the face. To think I didn’t take the alignment offer because I wanted to be more stable for my family. I’m in a very, very bad spot because of this,” they said.

“Our consolation for staying [and not accepting the original alignment offer] was stocks that we’re not allowed to sell for a year.”

They also described how confidence in the company’s handling of the WP Engine legal fight had steadily eroded.

“Internally, [Mullenweg] and the financial head assured everyone at the very beginning that we were going to absolutely smash WPE and that we had so much cash flow to spend on it without having any trouble,” they said. “Didn’t take long to watch that get rougher and rougher. Now we’re seeing the punchline.”

“We think maybe they have not been transparent with how much this lawsuit is actually costing. Or that maybe they’re about to settle.

“The people still behind are bewildered. Some of the biggest names, the most visible faces, the high performers—all gone.”

Last October, 159 employees accepted “alignment” packages offered to those who disagreed with Mullenweg’s handling of the WP Engine feud and wished to leave the company. Those who accepted, including former WordPress Executive Director Josepha Haden Chomphosy, received $30,000 or six months’ salary, whichever was higher.

Automattic’s feud with WP Engine went public last September when Mullenweg accused WP Engine and its private equity backer, Silver Lake, of exploiting WordPress without giving enough back to the open source project. The fallout has had wide-reaching consequences for the company. Since then, WP Engine has launched legal action, and Automattic has become entangled in litigation—including a class action—that appears to be draining time, energy, and resources.

In a recent message to WordPress core contributors, Mullenweg expressed frustration with the legal battle and estimated that WP Engine and Automattic were each spending about $15 million annually — “the equivalent of 60 engineers’ full-time salaries at $250k per year” — on litigation.

In a statement provided to The Repository, an Automattic spokesperson disputed the former employee’s claims regarding the size of the severance packages and earlier information regarding the average age of the impacted team members.

“We’re committed to handling all employment matters with integrity and fairness, aligning with our core operating values. Those impacted have our enduring gratitude for their time with the company and we wish them well,” the spokesperson said.

On LinkedIn, many ex-Automatticians shared the news of their layoffs, adding #opentowork to their profiles.

“I had thought that leading an AI team, and doubling my output with AI-assisted coding would keep my job secure after returning from parental leave,” posted RC Lachance, former Head of AI Classification Services. “But today I received an email that I am a part of the Automattic layoffs.”

Jonathan Lane, a Senior Quality Engineer on WooCommerce, said his entire team was let go.

This week’s layoffs follow other cost-cutting measures, including the cancellation of Automattic’s 2025 “Grand Meetup” retreat.

Now, many employees who have stayed with Automattic through the turmoil are wondering why they didn’t take the earlier offer to walk.

“A lot of people still probably don’t even know they’re fired yet,” the former employee said. “We’re all trying to help each other look for work. We love each other. Even though the culture changed at Automattic, the people never did.”

Updated, April 4, 2025: Added a statement from Automattic.

Correction, April 4, 2025: An earlier version of this article included information claiming that 95% of employees who were laid off were age 40 or over. New sources have verified that this is not the case, and the internal list shared with former employees was in keeping with United States employment law.

Image credit: Fede Padilla.