Automattic Loses 159 Employees Amid CEO’s Clash With WP Engine
Severance Package Accepted by 8.4% of Workforce
Automattic CEO Matt Mullenweg confirmed on Thursday that 159 employees (8.4% of staff) accepted a severance package offered to those who disagreed with his leadership direction and handling of the ongoing dispute with web hosting provider WP Engine. The announcement was made in a detailed blog post.
Key Details of the Severance Offer
- Financial Terms: $30,000 or six months’ salary (whichever was higher)
- Eligibility Restriction: Employees who accepted cannot be rehired by Automattic
- Departing Teams:
- 80% from WordPress/Ecosystem division
- 20% from Cosmos businesses (Pocket Casts, Day One, Tumblr, Cloudup)
Mullenweg framed the departures as a realignment, stating the company designed the “most generous buy-out package possible” to ensure team cohesion. He noted that the remaining 91.6% of employees collectively forfeited $126M in potential severance by staying.
High-Profile Departures and Internal Reactions
Notable exits include:
- Daniel Bachhuber, Head of WordPress.com
- Naoko Takano, Head of Programs and Contributor Experience
- Daniel Walmsley, Principal Architect for AI
Mullenweg described the week as an “emotional roller coaster,” acknowledging the difficulty of losing team members. Meanwhile, current employees publicly expressed support for the company’s direction.
Escalating Legal Battle With WP Engine
The severance wave coincides with a heated legal conflict between Automattic and WP Engine:
- Automattic’s Claims: WP Engine allegedly misused WordPress/WooCommerce trademarks
- WP Engine’s Lawsuit: Accuses Mullenweg of “abuse of power” and conflicts of interest
- Legal Standoff: Both parties have exchanged cease-and-desist letters
Automattic’s legal representative, Neal Katyal, dismissed WP Engine’s lawsuit as “meritless” in an official response.
Controversy Over Severance Communications
Reports surfaced that Mullenweg allegedly DM’d a former employee who discussed the severance offer publicly, raising questions about transparency. The CEO has yet to comment further on these allegations.
What’s Next for Automattic?
With nearly 1,700 employees remaining, the company faces:
- Operational restructuring post-departures
- Ongoing legal proceedings with WP Engine
- Scrutiny over open-source governance as WordPress’s co-creator
For updates, contact reporter Ivan Mehta or Signal @ivan.42.
📚 Featured Products & Recommendations
Discover our carefully selected products that complement this article’s topics:
🛍️ Featured Product 1: Tissue Holder Shaft-Prairie Field
Image: Premium product showcase
Carefully crafted tissue holder shaft-prairie field delivering superior performance and lasting value.
Key Features:
- Industry-leading performance metrics
- Versatile application capabilities
- Robust build quality and materials
- Satisfaction guarantee and warranty
🔗 View Product Details & Purchase
🛍️ Featured Product 2: Tee Connection
Image: Premium product showcase
Professional-grade tee connection combining innovation, quality, and user-friendly design.
Key Features:
- Cutting-edge technology integration
- Streamlined workflow optimization
- Heavy-duty construction for reliability
- Expert technical support available
🔗 View Product Details & Purchase
🛍️ Featured Product 3: Times Square® 1.75 gpm/6.6 L/min Shower Trim Kit With Water-Saving Showerhead, Double Ceramic Pressure Balance Cartridge With Lever Handle
Image: Premium product showcase
High-quality times square® 1.75 gpm/6.6 l/min shower trim kit with water-saving showerhead, double ceramic pressure balance cartridge with lever handle offering outstanding features and dependable results for various applications.
Key Features:
- Premium materials and construction
- User-friendly design and operation
- Reliable performance in various conditions
- Comprehensive quality assurance
🔗 View Product Details & Purchase
💡 Need Help Choosing? Contact our expert team for personalized product recommendations!
