Automattic CEO Matt Mullenweg recently announced that 159 employees, accounting for about 8.4% of the staff, have accepted a severance package offered by the company. The package, which provided $30,000 or six months of salary, was extended to those who disagreed with Mullenweg’s direction of WordPress and his handling of the dispute with web hosting provider WP Engine. Employees who accepted the package are not eligible to be re-hired by Automattic.
The majority of those who took the offer, nearly 80%, were from the company’s Ecosystem/WordPress division, while the remaining employees were from Automattic’s Cosmos businesses, which include apps like Pocket Casts, Day One, Tumblr, and Cloudup. Mullenweg referred to the package as an “Alignment Offer” and emphasized that it was designed to be generous to those who chose to accept it.
In response to the employee exodus, Mullenweg expressed mixed emotions, stating that it was unexpected to see a significant number of employees leave the company. He acknowledged the impact of each resignation, noting that it can be challenging to see individuals depart after investing in building a relationship with them.
The dispute between Automattic and WP Engine has been ongoing for nearly two weeks, with Mullenweg publicly criticizing WP Engine and accusing the company of misusing WordPress and WooCommerce trademarks. WP Engine retaliated by filing a lawsuit against Automattic and Mullenweg, alleging abuse of power and extortion. However, Automattic has dismissed these claims as baseless and looks forward to addressing them in federal court.
Amidst the controversy, there have been reports of a severance offer circulating among Automattic employees, leading to speculation and discussions within the company. Some employees who opted to remain at Automattic have expressed their support for the company and Mullenweg, highlighting a sense of solidarity during this challenging period.
Overall, the developments at Automattic underscore the complexities of managing a large organization and navigating disputes within the tech industry. While the company continues to address internal and external challenges, it remains focused on its mission and commitment to its products and community.