In a surprising revelation, Matt Mullenweg, CEO of Automattic, has confirmed that Tumblr, once a social media giant, has failed to achieve the turnaround expected despite significant investment.
Acquired from Verizon for a mere $3 million in 2019, Tumblr’s journey has been a rollercoaster of highs and lows. Originally purchased by Yahoo for $1.1 billion, its value plummeted, leading to its acquisition by Automattic.
Despite a $100 million investment aimed at reviving the platform, Tumblr’s expected resurgence remained elusive.
A Glimpse Inside
A leaked internal memo from Mullenweg to Tumblr staff has shed light on the company’s future plans. The memo outlines a strategy to redistribute Tumblr employees to other Automattic teams, indicating a shift in focus.
This move comes as a response to Tumblr’s inability to generate the anticipated revenue, prompting a reevaluation of its operational strategy.
What Does This Mean for Tumblr Employees?
The leaked memo reveals that 139 product team members, internally referred to as “Bumblr,” will be offered opportunities in other divisions within Automattic. However, it’s not all bleak news.
Employees in Customer Support and the Trust and Safety teams, known internally as “Happiness” and “T&S” respectively, will remain with Tumblr. This decision reflects Automattic’s commitment to maintaining core aspects of Tumblr’s operations.
Contrary to some rumors, there are no plans to shut down Tumblr. The focus now shifts to operating the platform with a leaner team. Automattic remains committed to exploring Tumblr’s potential in 2024, aiming to enhance its performance despite the reduced workforce.
This approach signifies a new chapter for Tumblr, one that balances preservation with innovation.
Tumblr’s story is a testament to the volatile nature of the tech industry, where
success is never guaranteed. Automattic’s decision to restructure rather than close Tumblr offers a glimmer of hope for the platform’s loyal user base.
As Tumblr embarks on this new journey, the tech world watches with keen interest to see if this once-dominant social media platform can reinvent itself once more.