Matt Mullenweg, the head of Automattic, has confirmed a recent leak regarding Tumblr, a popular microblogging platform. A leaked internal memo revealed significant changes at Tumblr, including staff reassignments within Automattic and a reduced workforce for the Tumblr team.
Tumblr’s financial difficulties
Tumblr, acquired by Automattic from Verizon in 2019 for US$3 million, has struggled to achieve the financial goals set by its new owners. The acquisition came after Verizon acquired Yahoo, which had previously bought Tumblr for US$1.1 billion. Despite a relatively low purchase price, Automattic invested a hefty US$100 million in an attempt to revitalise Tumblr, efforts that ultimately yielded little results.
Reallocating Tumblr staff
The leaked memo and a subsequent Tumblr post by Mullenweg revealed plans to offer 139 product team employees the opportunity to transfer to other divisions within Automattic. Meanwhile, those in Customer Support and the Trust and Safety teams are expected to remain in their current positions at Tumblr. Mullenweg’s statement clarified the internal terminology used within the company:
- “Bumblr” refers to the product team.
- “Happiness” denotes the customer service team.
- “T&S” stands for the Trust and Safety team.
Mullenweg’s announcement emphasised that no layoffs are planned, focusing instead on redirecting efforts and resources within the company: “The majority of the 139 people in Bumblr will switch to other divisions. No plans for any switches in Happiness or T&S.”
Future of Tumblr
While there are no immediate plans to shut down Tumblr, the platform will continue with a leaner team. Automattic remains committed to exploring Tumblr’s potential in 2024, focusing on its performance and strategic direction.
For more detailed insights, Mullenweg’s statement on the Tumblr memo can be found on the Tumblr platform itself, offering a clearer picture of the future for both Tumblr and its employees.
