Automattic, the company behind WordPress, is facing significant upheaval as CEO Matt Mullenweg confirmed that 159 employees, approximately 8.4% of the workforce, accepted a severance package amid disagreements over his direction for the platform and ongoing tensions with web hosting provider WP Engine.
In a blog post, Mullenweg described the severance package, termed an “Alignment Offer,” which provided $30,000 or six months’ salary, whichever was greater. He noted that those who accepted the offer would not be eligible for rehire at Automattic. Nearly 80% of the departing employees were part of the Ecosystem/WordPress division, with the remainder in the company’s Cosmos businesses, which include apps like Pocket Casts, Day One, Tumblr, and Cloudup.
Mullenweg attempted to frame the situation positively, stating, “The other 91.6% gave up $126M of potential severance to stay!” He acknowledged the emotional weight of the departures, saying, “Every resignation stings a bit.”
Notable exits include key figures such as Daniel Bachhuber, head of WordPress.com, and Naoko Takano, head of programs and contributor experience. The departures come during a contentious dispute between Automattic and WP Engine, which has escalated over the past two weeks. Mullenweg has publicly labeled WP Engine a “cancer to WordPress,” accusing it of misusing WordPress and WooCommerce trademarks and banning the company from accessing WordPress.org resources.
WP Engine has responded by filing a lawsuit against Automattic and Mullenweg, alleging “abuse of power” and extortion, while asserting that Mullenweg has conflicts of interest regarding his role in the open-source project. Automattic has dismissed these claims as meritless, with legal representative Neal Katyal expressing confidence in the upcoming court proceedings.
The recent severance offers circulated among Automattic employees had sparked discussions on social media, with some employees who chose to remain voicing support for Mullenweg and the company’s direction.
Philips Babatunde