Automattic, parent company of, WooCommerce, and Tumblr, has begun staff layoffs across multiple divisions.
The organizational changes follow a September board shake-up, complete board turnover, and the departures of key executives including the CFO and chief legal officer.
The layoffs affect teams including communications, social, WordPress.com and VIP customer service. The plan calls for the changes to be rolled out gradually over the coming months. The goal is to improve financial performance ahead of a debt negotiation scheduled for June.
A company spokesman said the phased implementation of the changes was being done to give employees more generous compensation and more time off. CEO Matt Mullenweg initially said the layoffs were at the company's usual levels, but later said it was focused on a safety issue.
Internal unrest and executive departures
The changes come after a period of intense internal crisis. In September, the board attempted to remove Muhlenweg, which failed but led to a complete renewal of the board members.
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Following the controversy, senior executives including the chief financial officer, interim chief financial officer and general counsel left. Communications director Megan Fox also announced her departure, stating that her position had been eliminated.
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