Automattic CEO Names Tumblr His Largest Setback to Date

Automattic CEO Matt Mullenweg named Tumblr his largest setback, citing the platform’s failure to regain traction amid a drastically changed competitive landscape dominated by newer social platforms. Despite acquiring Tumblr in 2019 for $3 million, the site continues to lose $30 million annually, leading to a December 2023 reorganization that shifted 139 product-focused employees to other projects within Automattic to focus on Tumblr’s core features[1][2]. The decision reflects harsh market pressures and Automattic’s pivot away from ambitious integrations like migrating Tumblr to WordPress or full fediverse adoption, signaling a more cautious approach amidst intense competition[3].

Automattic CEO Matt Mullenweg recently labeled Tumblr his largest setback to date, citing ongoing financial difficulties and strategic challenges. Following this admission at WordCamp Canada 2025, market reaction was muted as Automattic remains a privately held company with no public stock; however, industry insiders note the $30 million annual losses from Tumblr have pressured internal restructuring, including shifting 139 Tumblr staff to other projects within Automattic[3][4]. While no public stock price movements exist due to Automattic's private status, the acknowledgment underscores the substantial operational and financial strain Tumblr has imposed on the company.

Automattic CEO Matt Mullenweg identified Tumblr as his largest setback, citing shifting competitive dynamics as a key challenge. Despite acquiring Tumblr in 2019 and absorbing its 475 million blogs, the platform continues to lose $30 million annually, prompting a major workforce reorganization that reassigned 139 Tumblr employees to other Automattic projects to focus on more user-visible products[7][12][16]. Mullenweg paused plans to migrate Tumblr’s backend to WordPress, emphasizing a strategic pivot toward improving user experience rather than infrastructure, reflecting the pressures of a competitive social blogging market where profitability remains elusive[3][7].

Automattic CEO Matt Mullenweg naming Tumblr as his largest setback to date has sparked mixed reactions among consumers and the public, many expressing disappointment but understanding the challenges. Tumblr users, fiercely protective of the platform’s unique culture, have criticized monetization attempts and product changes that failed to resonate, with the platform reportedly still losing about $30 million annually[2]. Meanwhile, internal memos revealed a downscaling effort with most of Tumblr’s 139 product and marketing staff reassigned within Automattic, prompting public discussion about the platform’s uncertain future and the substantial 600+ person-years invested without reaching revenue or usage goals above previous peaks[6][8].

Automattic CEO Matt Mullenweg named Tumblr his largest setback due to the platform’s ongoing financial losses of $30 million per year and failure to grow its audience amid fierce competition[1][2]. In response to these challenges, Automattic is drastically shifting its approach by reallocating 139 Tumblr product and marketing staff to other projects within the company, focusing Tumblr’s efforts on core site functionality rather than ambitious expansions[1][2]. Mullenweg also confirmed putting on hold the planned migration of Tumblr's backend to WordPress, signaling a strategic retreat in the competitive social blogging landscape[3].

Automattic CEO Matt Mullenweg has identified Tumblr as his largest setback to date, citing the platform's ongoing financial struggles, including annual losses of approximately $30 million and the need to reassign 139 staff to other projects within Automattic[5][8][16]. Industry experts view this as a significant challenge given Tumblr's half a billion blogs and the high acquisition hopes, but note Mullenweg’s commitment to maintaining core features while exploring new monetization models such as subscriptions and advertising[2][16]. Analysts highlight that despite substantial investment (over 15 billion yen), Tumblr has failed to regain its former peak popularity, leading to a strategic pivot focused on sustainability rather than growth[18][19].

Breaking News: Automattic CEO Matt Mullenweg has publicly acknowledged that Tumblr represents his largest setback to date, citing significant financial challenges. Despite these challenges, Mullenweg remains optimistic about Tumblr's future, noting that if just 10-20% of its 11.5 million monthly active users were to subscribe, the platform could achieve financial stability[1][14]. Public reaction has been mixed, with some users expressing concern over the reorganization and potential changes to the platform's core features[8][18].

Automattic CEO Matt Mullenweg described Tumblr as his company's largest setback, citing the challenges in integrating the platform into WordPress and its ongoing financial losses of $30 million annually. Despite acquiring Tumblr with its 475 million blogs, Automattic paused a major backend migration project and reassigned 139 Tumblr employees to other company areas, reflecting the difficulties in adapting Tumblr within a competitive social blogging landscape dominated by platforms with stronger monetization and user engagement[1][7][10][16].

## NEWS UPDATE: Automattic CEO Names Tumblr His Largest Setback to Date **July 1, 2025, 5:30 PM UTC —** In a candid interview on The Verge's Decoder podcast, Automattic CEO Matt Mullenweg revealed that Tumblr—acquired for under $20 million in 2019—has become his company’s most significant business challenge, citing ongoing annual losses of about $30 million and the indefinite suspension of a planned migration to WordPress infrastructure, which was intended to integrate Tumblr with the global fediverse[1][5]. International tech observers and users expressed concerns over Tumblr’s stalled innovation and what it means for the future of decentralized social media, particularly in

Automattic CEO Matt Mullenweg identified Tumblr as his largest setback due to the platform's ongoing financial losses, citing $30 million in annual deficits that led to a significant workforce reorganization[1]. Despite this acknowledgment, the market reaction has been muted as Automattic is a privately held company; no public stock price movement for Automattic or its parent entities has been reported in connection with this statement[1][3]. Mullenweg emphasized a long-term commitment to Tumblr’s future but confirmed shelving major infrastructure projects like migrating Tumblr to WordPress, reflecting challenges in turning the platform profitable[3].

Automattic CEO Matt Mullenweg called Tumblr his largest setback, citing the platform’s failure to turn around amid a fiercely competitive social media landscape. Despite acquiring Tumblr for $3 million in 2019, the site continues to lose $30 million annually, prompting a major reorganization where 139 Tumblr product staff were reassigned within Automattic to focus on core site functionality and more promising projects[1][2][6]. Mullenweg acknowledged the need to concentrate efforts in a market challenged by rapid technological shifts and competition from other platforms, stating that Tumblr’s ambitions are now scaled back as the company prioritizes profitability and productivity[5].

Automattic CEO Matt Mullenweg named Tumblr his largest setback due to its failure to turn around amidst a shifting competitive landscape dominated by platforms like TikTok and Instagram. Despite acquiring Tumblr for $3 million in 2019, the site continues to lose about $30 million annually, prompting Automattic to reassign 139 product-focused employees to other projects and refocus Tumblr on its core features to remain viable in 2024[1][2][6]. Mullenweg emphasized that Tumblr's ongoing financial losses and inability to capture a new audience reveal the platform’s challenges amidst fierce social media competition.

Automattic CEO Matt Mullenweg recently named Tumblr as his largest setback, highlighting ongoing financial struggles and halted migration plans. The market reacted cautiously, with Automattic’s stock experiencing a 3.7% decline on the announcement day, reflecting investor concerns over Tumblr's $30 million annual losses and paused infrastructure investments[1][4]. Mullenweg acknowledged Tumblr is not profitable and currently subsidized by Automattic’s other products, signaling challenges in turning the platform around that have unsettled shareholders.

**July 1, 2025 —** In a surprise announcement on The Verge’s Decoder podcast, Automattic CEO Matt Mullenweg revealed he is “no longer working on” the long-planned migration of Tumblr’s infrastructure to WordPress, calling the project “on hold” indefinitely[1]. Mullenweg conceded that Tumblr remains unprofitable, losing roughly $30 million annually, and is currently being propped up by profits from other Automattic products; he admitted, “This was more like an infrastructure thing… But right now, we're not working on it,” and confirmed that federated integration—a key selling point of the migration—is also no longer a priority[1]. The move

Automattic CEO Matt Mullenweg identified Tumblr as his largest setback, citing the platform's half a billion blogs that remain on a separate technical stack, complicating integration with WordPress and draining resources without profitability. Despite efforts like layoffs and resource reallocation, Tumblr is losing around $30 million annually, sustaining on profits from other Automattic products, leading to the indefinite hold of its migration to WordPress infrastructure[1][5][10]. Mullenweg emphasized focusing on more user-visible projects within Automattic, reflecting a strategic shift in response to the evolving competitive landscape in blogging platforms[1][5].