Automattic, a tech company based in San Francisco, has recently been facing a public conflict that has resulted in the resignation of 159 employees, making up about 8.4 percent of the company’s workforce. The CEO of Automattic, Matt Mullenweg, offered a generous severance package of $30,000 or six months’ salary to those who were unhappy with his leadership. However, there was a catch – those who accepted the severance were not allowed to be re-hired at Automattic.
The majority of the departing employees were from the WordPress Ecosystem division, while the rest were from other sectors like Pocket Casts, Day One, Tumblr, and Cloudup. Mullenweg referred to the severance package as an “Alignment Offer” and described it as the most generous buy-out package possible. Despite trying to put a positive spin on the situation, he admitted that it had been emotionally challenging for him.
Some high-profile employees who left the company include Daniel Bachhuber, head of Automattic’s commercial WordPress hosting arm, and Naoko Takano, the former head of programs and contributor experience. Their departures are seen as a significant loss for the company, known for its WordPress-driven innovations.
The resignations occurred amidst escalating tensions between Automattic and WP Engine, another player in the web hosting market. Mullenweg openly criticized WP Engine, accusing them of misusing WordPress and WooCommerce trademarks. WP Engine retaliated by filing a lawsuit against Automattic and Mullenweg, alleging abuse of power and conflicts of interest. Automattic has denied these claims.
The situation has also sparked backlash on social media, with accusations of bullying against Mullenweg. Former employee Kellie Peterson claimed that Mullenweg tried to silence her criticism by sending her legal threats. Despite the internal unrest, some Automattic employees who chose to stay have shown support for the company and its leadership.
As Automattic faces legal battles and internal challenges, Mullenweg remains focused on developing WordPress and its associated projects. He sees the departures as an opportunity for a fresh start and is optimistic about the company’s future direction moving forward.
