Automattic Announces Restructuring, 16% Workforce Reduction

2025-04-02
Automattic Announces Restructuring, 16% Workforce Reduction

Automattic CEO Matt Mullenweg announced a company restructuring involving a 16% workforce reduction. This decision aims to improve efficiency, profitability, and competitiveness in a rapidly evolving market. Affected employees will receive severance packages, benefits, and job placement resources. Automattic stated this restructuring is necessary to ensure long-term success and continue its mission to democratize the internet.

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Startup

Automattic Cuts Back on Sponsored WordPress Contributions

2025-01-09
Automattic Cuts Back on Sponsored WordPress Contributions

Automattic announced it's reducing sponsored contributions to the WordPress project due to legal action from WP Engine diverting resources and facing community criticism. This realignment focuses Automattic's efforts on its own for-profit projects like WordPress.com and WooCommerce, while matching volunteer hours pledged by other companies for community-wide benefit, focusing on security and critical updates. Automattic emphasizes this isn't abandoning WordPress, but a strategic recalibration to ensure its long-term health and more impactful contributions.

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Development

WordPress Battles Private Equity: A Fight for the Future of Open Source

2024-12-12
WordPress Battles Private Equity: A Fight for the Future of Open Source

WordPress, the world's leading content management system, is locked in a battle with private equity firm Silver Lake and its investment, WP Engine. After receiving massive investment, WP Engine, a for-profit company built on WordPress, has aggressively exploited the WordPress trademark while contributing minimally back to the open-source community. After repeated attempts at communication failed, Automattic CEO and WordPress co-founder Matt Mullenweg took action, restricting WP Engine's access to WordPress.org resources to defend the open-source community and the future of WordPress. This conflict highlights the fundamental conflict between open-source communities and profit-maximizing private equity firms, serving as a cautionary tale about the long-term health of open-source projects.

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Development Private Equity