Automattic starts layoffs at WordPress.com and its VIP business, a month after its board failed to oust CEO Matt Mullenweg

by | Oct 25, 2026 | Latest E-commerce News & Updates

Automattic, the parent of WordPress.com, WooCommerce, and Tumblr, has begun laying off staff in its communications and social teams, WordPress.com’s marketing and product teams, and its VIP enterprise unit, according to TechCrunch. Insiders told TechCrunch that Automattic plans to spread the cuts over the coming months to improve its fourth-quarter revenue before it renegotiates its debt next June. Automattic said it’s staggering the changes so it can offer more generous severance, while CEO Matt Mullenweg said the terminations weren’t above normal levels. The layoffs come a month after board members tried and failed to remove Mullenweg, an attempt that ended with the entire board replaced and the CFO, interim CFO, and chief legal officer all leaving.

Paul Drecksler is the founder and editor of Shopifreaks, covering the most important stories in e-commerce.

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