Tumblr announced that it is re-evaluating its approach after failing to meet revenue and usage goals and is making changes to its staff and focus. A leaked memo, circulated on the platform and subsequently confirmed by Automattic CEO Matt Mullenweg, revealed the company’s plans to downscale its ambitions and reallocate staff members to other divisions within parent company Automattic.
According to the memo, the majority of Tumblr’s non-support, safety, and moderation staff will be moved to other divisions within the company, reflecting a shift in focus and strategy. Tumblr, which was acquired by Automattic in 2019, has not achieved the expected results in terms of revenue and usage, despite considerable effort from a large team over the years since the acquisition.
Automattic CEO Matt Mullenweg emphasized that there would be “no changes” in the Trust and Safety team handling moderation, and in fact, there might be an addition of more staff to that team. However, there will be significant changes in other areas, with a more focused approach planned for 2024, which includes an emphasis on the “core functionality” of the site.
In his Tumblr blog post, Mullenweg elaborated on the company’s plans for the future, mentioning a more streamlined approach and a reduction in new feature launches in favor of improving existing functionality and core flows. The leaked memo outlined that Automattic is implementing a backup plan to re-evaluate its strategy and decide where to concentrate its energy without laying off staff from Automattic as a whole.
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The leaked memo also mentioned re-evaluating certain product developments and marketing efforts within the team, with an emphasis on transferring the majority of staff from these areas to other divisions within Automattic. This move marks a significant change in Tumblr’s structure, with smaller, more focused teams set to work on the core parts of the platform that users have expressed interest in seeing improved.
Tumblr has attempted various new monetization strategies, including Live, Blaze, Post Plus, and an ad-free subscription, but these initiatives have seen mixed success. The leaked memo also mentioned that Post Plus faced a misinformation campaign that led to a backlash, and other options like Blaze have not generated enough revenue to sustain the site. As a result, Tumblr is planning to sunset or roll back features that have not worked as planned.
The company’s ownership by Automattic has been marked by several trends and attempts to engage users, including loosening restrictions on adult content and introducing unique fundraising techniques. However, these efforts have not been enough to make the platform sustainable in the long run.
Tumblr’s struggles with monetization and focus are not unique in the social media landscape, with several other platforms also facing similar challenges. The company’s move to re-evaluate its approach and reallocate staff indicates a strategic shift in its efforts to make the site successful and sustainable in the future.
