As a struggling social media platform with roots in a bygone era, Tumblr might see minimal staffing moving forward. An internal memo purportedly from parent company Automattic is circulating on social media platforms, acknowledging dissatisfaction with the results of their efforts.
Reassigning Employees to Other Projects
Tumblr is facing a critical juncture in its prolonged financial challenges, revealed in a leaked memo. Engadget reported that the majority of its workforce, consisting of 139 employees, will be reassigned to other projects within the parent company Automattic, which maintains a total workforce of around 1,900.
CEO Matt Mullenweg publicly acknowledged the memo on his Tumblr blog, addressing inquiries from users. This decision appears to be a significant departure from a previous leak suggesting Automattic's plans to integrate a TikTok-like algorithmic feed into the aging Tumblr. While this doesn't necessarily spell the end for Tumblr, the memo paints a bleak picture of its future.
It indicates that the "majority of the 139 people" will transition to other Automattic projects, leaving a skeletal team of Trust & Safety and support workers to manage Tumblr's dwindling presence. In a year marked by substantial layoffs, navigating this transition without significant job losses could be a potential silver lining.
Responding to concerns about the potential shutdown of Tumblr, Mullenweg conveyed that the previous approach had proven ineffective. It failed to rejuvenate the business adequately, generating insufficient funds for the necessary infrastructure and staff investments to sustain Tumblr.
Many users expressed dissatisfaction with the attempted changes. Beginning January 1, 2024, the company will adopt a different structure, employing smaller, more focused teams to enhance the core aspects of Tumblr based on user feedback. Unsuccessful initiatives will be phased out or reverted as part of this restructuring.
Automattic, the company renowned for WordPress, took control of Tumblr in 2019 from Verizon, the previous owner that acquired the platform through its purchase of Yahoo! in 2017. The platform underwent a series of ownership changes, none of which proved successful in revitalizing the microblogging network.
The controversial decision to ban adult content likely contributed to its challenges. An alleged memo suggests that despite over 600 person-years of effort since the acquisition in 2019, Tumblr failed to achieve the anticipated results, specifically in terms of revenue and usage surpassing previous peaks.
The leaked memo emphasizes the team's commitment to reflection and determining where to channel their collective energy in the wake of these outcomes, incorporating motivational clichés about climbing mountains and the value of trying and failing over not trying at all.
Facing Challenges
Tumblr's struggles are not unforeseen. The blogging platform experienced a momentary resurgence in popularity when dissatisfied Twitter users sought alternative platforms after Elon Musk's acquisition. However, in July, Mullenweg disclosed that Tumblr is incurring an annual loss of approximately $30 million.
While Tumblr confronts challenges common to social platforms, TechCrunch reported that it encounters a unique dilemma of serving a user base that fiercely opposes most attempts at monetization.
Despite users being willing to pay for unconventional features like sending crabs to friends or purchasing joke blue checks to mock Twitter, the platform's foray into a subscription feature was met with significant setbacks, resembling one of the least successful product launches.
