In October, Automattic's CEO Matt Mullenweg offered employees $30,000 to quit, leading to significant layoffs after many declined the offer. Now, he has announced a 16% reduction in workforce, approximately 279 employees, as part of a restructuring effort due to a highly competitive market and the need for increased productivity and profitability. Mullenweg's strategy is to make Automattic more agile, focusing on product quality while navigating technological changes. Laid-off employees will receive severance benefits, although specifics were not disclosed.
To support our customers and products, we must improve our productivity, profitability, and capacity to invest. The restructuring effort will see Automattic become more agile and responsive.
Mullenweg noted that Automattic is at a 'crossroads'. Even though the company's revenue is growing, the competitive market and rapid technological changes are forcing difficult decisions.
The restructuring will focus on product quality, emphasizing doing fewer things better, reflecting a shift in strategy in response to market challenges.
Mullenweg’s recent layoffs of 16% of the workforce come after earlier buyout offers, marking a significant restructuring in response to internal and market pressures.
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