diff --git a/plugins/woocommerce/bin/package-update.sh b/plugins/woocommerce/bin/package-update.sh
deleted file mode 100755
index 802d40ba32c..00000000000
--- a/plugins/woocommerce/bin/package-update.sh
+++ /dev/null
@@ -1,26 +0,0 @@
-#!/bin/sh
-
-# Output colorized strings
-#
-# Color codes:
-# 0 - black
-# 1 - red
-# 2 - green
-# 3 - yellow
-# 4 - blue
-# 5 - magenta
-# 6 - cian
-# 7 - white
-output() {
-	echo "$(tput setaf "$1")$2$(tput sgr0)"
-}
-
-# Autoloader optimization is forced to prevent OOM fatal errors in JetPack Autoloader.
-# We running the optimization in background to speedup build process, with dev-environments in mind.
-# Building zips enforcing the optimization during the install process, so we are good around building releases as well.
-output 3 "Generating optimized autoloaders"
-composer dump-autoload --optimize --quiet &
-
-# find ./packages -name "*.bak" -type f -delete &
-
-output 2 "Done!"
diff --git a/plugins/woocommerce/bin/post-install.sh b/plugins/woocommerce/bin/post-install.sh
new file mode 100644
index 00000000000..e07b3395941
--- /dev/null
+++ b/plugins/woocommerce/bin/post-install.sh
@@ -0,0 +1,6 @@
+#!/usr/bin/env bash
+
+# Required for dev and build environments: generate optimized autoloaders, safe to run in background.
+composer dump-autoload --optimize --quiet &
+# Required for dev environments: install tooling dependencies, if it failing we'll notice it in CI/locally.
+composer bin all install --ansi &
diff --git a/plugins/woocommerce/bin/post-update.sh b/plugins/woocommerce/bin/post-update.sh
new file mode 100644
index 00000000000..c6ffaf9259f
--- /dev/null
+++ b/plugins/woocommerce/bin/post-update.sh
@@ -0,0 +1,6 @@
+#!/usr/bin/env bash
+
+# Required for dev and build environments: generate optimized autoloaders, safe to run in background.
+composer dump-autoload --optimize --quiet &
+# Required for dev environments: update tooling dependencies, not suitable to run in background.
+composer bin all update --ansi
diff --git a/plugins/woocommerce/composer.json b/plugins/woocommerce/composer.json
index a42b16a87a7..548528411b3 100644
--- a/plugins/woocommerce/composer.json
+++ b/plugins/woocommerce/composer.json
@@ -96,12 +96,10 @@
 	},
 	"scripts": {
 		"post-install-cmd": [
-			"@composer bin all install --ansi",
-			"sh ./bin/package-update.sh"
+			"sh ./bin/post-install.sh"
 		],
 		"post-update-cmd": [
-			"@composer bin all update --ansi",
-			"sh ./bin/package-update.sh"
+			"sh ./bin/post-update.sh"
 		],
 		"test": [
 			"phpunit"
diff --git a/plugins/woocommerce/packages/README.md b/plugins/woocommerce/packages/README.md
index aebb5f65d25..807302aa9f2 100644
--- a/plugins/woocommerce/packages/README.md
+++ b/plugins/woocommerce/packages/README.md
@@ -39,12 +39,6 @@ Edit `composer.json` in the root directory and add the package and package versi
   ...
 ```
 
-Next, if your package contains user translatable strings you'll need to edit `bin/package-update.sh` and instruct it to change your package textdomain to the `woocommerce` textdomain. For example:
-
-```shell
-find ./packages/woocommerce-example-package -iname '*.php' -exec sed -i.bak -e "s/, 'woocommerce-example-package'/, 'woocommerce'/g" {} \;
-```
-
 Finally, you will need to tell core to load your package. Edit `src/Packages.php` and add your package to the list of packages there:
 
 ```php