The tech industry is buzzing as news breaks that 159 employees are leaving Automattic, representing approximately 8.4% of the company’s workforce. This departure stems from CEO Matt Mullenweg’s recent clash with WP Engine, a popular web hosting provider. The employees’ exit follows the company’s offer of a severance package for those dissatisfied with Mullenweg’s leadership and his handling of ongoing disputes.
Why Employees Are Leaving Automattic
Mullenweg recently revealed that Automattic offered a generous severance package to its employees, which many viewed as a signal of internal unrest. The offer included either $30,000 or six months’ salary, whichever was higher. However, accepting the offer meant those employees would no longer be eligible for rehire at Automattic. Employees are leaving Automattic largely due to their discontent with Mullenweg’s direction of WordPress, the open-source platform co-created by Mullenweg himself, and the handling of the conflict with WP Engine.
According to Mullenweg, the bulk of the employees who chose to leave were from the Ecosystem/WordPress division, while others were part of Automattic’s Cosmos businesses, including apps like Pocket Casts, Day One, Tumblr, and Cloudup. In a blog post, Mullenweg described the offer as an “Alignment Offer,” designed to give employees a clear choice—either support the company’s future or opt out.
The Escalating Battle with WP Engine
The departure of 159 employees occurs amid a broader battle between Automattic and WP Engine. Tensions escalated when Mullenweg publicly called WP Engine a “cancer to WordPress,” accusing them of misusing the WordPress and WooCommerce trademarks. WP Engine has since filed a lawsuit against Automattic and its CEO, alleging abuse of power, extortion, and conflicts of interest.
The two companies have exchanged cease-and-desist letters, with WP Engine demanding Automattic stop using its platform for WordPress-related resources. Despite the ongoing legal battle, Automattic remains confident that WP Engine’s claims are unfounded. Legal representatives for Automattic have dismissed the lawsuit, expressing confidence that the court will rule in their favor.
Impact on Automattic’s Workforce
Employees are leaving Automattic during a particularly challenging time for the company, with leadership navigating legal issues and internal unrest. Mullenweg acknowledged the emotional toll of losing valued team members, stating that “every resignation stings a bit.” However, he maintained that the remaining 91.6% of employees have shown their commitment to Automattic’s vision by choosing to stay, forfeiting potential severance worth millions.
On social media, there have been mixed reactions. While some current employees have publicly supported Automattic and its leadership, others have hinted at the severance offer being a tactic to mitigate internal dissatisfaction.
What Lies Ahead for Automattic?
As 159 employees are leaving Automattic, the company must now focus on maintaining stability and addressing any potential morale issues within the remaining workforce. With the legal battle against WP Engine still unfolding, Automattic’s future direction could significantly impact both the company and the WordPress ecosystem at large.
