Restructuring Announcement

CEO behavior, legal fights, and the “elephant in the room”

• Many commenters see the restructuring as directly linked to the CEO’s recent behavior and the high‑profile legal battle with a major WordPress host.
• Allegations discussed include: aggressive trademark/legal tactics against a competitor and its customers, using foundation power to punish competitors, banning contributors, manipulating plugin repo control, and questionable behavior around user data on an acquired platform.
• Some frame the core problem as failed optics and moral posturing; others say the real issue is erratic, vengeful behavior that scared the broader community and damaged trust.
• There’s debate over whether the CEO is still a strong strategist with a long, successful track record, or has now “proven the opposite.”

Revenue growth vs. layoffs rationale

• The phrase “our revenue continues to grow” in a 16% RIF announcement is widely criticized as tone‑deaf.
• Several argue it obscures rising expenses, especially self‑inflicted legal costs, and undermines morale.
• Others defend it as minimal transparency, noting that operating expenses can outpace revenue and layoffs become the standard lever.

Severance, voluntary exits, and labor protections

• Severance now appears far worse than last year’s voluntary buyout (months of pay then vs. ~9 weeks now), seen as punishing “loyalty.”
• Commenters note that jurisdictions with stronger worker protections seem to have avoided layoffs.
• General advice emerges: take generous early packages and don’t bank on company loyalty.

Hardware retention and IT/security tradeoffs

• Letting laid‑off staff keep laptops is seen as a small but appreciated goodwill gesture; others note it’s often cheaper and simpler than collecting, wiping, redistributing, and tracking devices.
• Discussion covers security practices (remote wipe/MDM), recycling vs. reusing, and corporate reluctance to sell or donate old gear.

Governance, control, and leadership accountability

• Many argue the CEO should step down or be removed; others say this is structurally impossible because of control over voting rights.
• The company name and employee demonym are debated as signals of narcissism vs. harmless branding.
• Broader thread notes the principal–agent tension between founders and investors, and how investor control can both save or “ruin” companies.

Product and ecosystem fallout

• Internal chatter suggests Tumblr may have lost ~60% of its staff, worrying users who pay to support it.
• People wonder what this means for newer acquisitions (e.g., universal chat apps) and for long‑term WordPress stewardship.
• Some long‑time admirers say the recent drama has pushed them off WordPress entirely and they no longer recommend it.