Automattic loses 159 employees amid rising tensions between the CEO and WP Engine.

Automattic's CEO, Matt Mullenweg, announced that 159 employees, representing approximately 8.4% of the total workforce, accepted a severance package offered to those who disagreed with the direction WordPress was taking and its management of a conflict with web hosting provider WP Engine. In a blog post, Mullenweg mentioned that the package included $30,000 or six months' salary, whichever was higher, although employees who accepted it would not be eligible for rehire by the company.

Almost 80% of those who took the offer worked in the Ecosystem / WordPress division of the company, while the rest belonged to Automattic's Cosmos businesses, which include applications such as Pocket Casts, Day One, Tumblr, and Cloudup. Mullenweg, a co-founder of WordPress and a prominent figure in the open-source project, tried to frame the situation positively, pointing out that the company had designed the "most generous buyout package possible," which he referred to as the "Alignment Offer."

The executive emphasized that the human resources department had added some additional details to make the offer more appealing. Mullenweg also noted that the remaining 91.6% of employees chose to forgo a total of $126 million in potential severance to remain with the company. In his statement, he described the week as an emotional roller coaster, recalling that when hiring someone, there is an expectation of establishing a lasting and beneficial relationship.

Among the employees who left the company were WordPress.com head Daniel Bachhuber, as well as Naoko Takano, Director of Programs and Contributor Experience, and Daniel Walmsley, Principal AI Architect. The dispute between Mullenweg and WP Engine has escalated in recent weeks, with Mullenweg accusing WP Engine of being a "cancer for WordPress" and of misusing WordPress and WooCommerce trademarks, in addition to banning their access to WordPress.org resources.

Both companies have exchanged cease-and-desist letters, and on the same Thursday, WP Engine filed a lawsuit against Automattic and Mullenweg, alleging "abuse of power" and extortion. For its part, Automattic has dismissed all of WP Engine's claims as unfounded. The company's legal representative, Neal Katyal, stated in a blog that he found no merit in WP Engine's complaint and that they are awaiting consideration from the federal court regarding their lawsuit.

In recent days, several employees on X have hinted at the severance offer that was circulating. Furthermore, Mullenweg reportedly sent a direct message to a former employee who had commented on the offer, accusing it of attacking the company. Today, some Automattic employees who decided to stay shared supportive messages towards the company and Mullenweg.