159 Workers Accept Tech CEO's Offer Of $30K Payment, Or Higher, If They Quit Their Jobs With One Condition

Automattic, the San Francisco-based tech company best known for WordPress, has been at the center of a public spat that escalated over recent weeks. This conflict between Automattic CEO Matt Mullenweg and web hosting provider WP Engine has led to the resignation of 159 employees, roughly 8.4 per cent of the company's workforce. Mullenweg's offer of a generous severance package to those dissatisfied with his leadership has left many within the tech community watching closely.

159 Workers Accept $30K Severance Amid Leadership Disputes

On Thursday, Mullenweg provided a major update on the ongoing situation: 159 employees chose to resign after accepting a severance package that offered $30,000 or six months' salary, whichever was higher. However, the deal came with a catch—those who accepted the severance were not eligible for re-hiring at Automattic.

The majority of the departing employees, approximately 80 percent, were part of the company's WordPress Ecosystem division, while the remaining 20 percent worked in Automattic's other business sectors, such as apps like Pocket Casts, Day One, Tumblr, and Cloudup.

Mullenweg, who co-created WordPress, framed the mass resignations in a positive light. He referred to the severance package as an "Alignment Offer" and described the package as "the most generous buy-out package possible." In a blog post, he explained, "HR added some extra details to sweeten the deal; we wanted to make it as enticing as possible."

The Emotional Toll of Departures

Though Mullenweg attempted to put a positive spin on the situation, he admitted that the week had been emotionally taxing. "The day you hire someone, you aren't expecting them to resign or be fired; you're hoping for a long and mutually beneficial relationship. Every resignation stings a bit," he wrote.

Among the high-profile departures were Daniel Bachhuber, head of Automattic's commercial WordPress hosting arm, and Naoko Takano, the former head of programs and contributor experience. Their exit marks a significant loss for the company, which has long prided itself on its WordPress-driven innovations.

The Automattic and WP Engine Feud

The resignations come amid escalating tensions between Automattic and WP Engine, another major player in the web hosting market. Mullenweg has openly criticized WP Engine, going so far as to label the company a "cancer to WordPress." He accused WP Engine of misusing WordPress and WooCommerce trademarks and even barred them from accessing open-source resources on WordPress.org.

Both companies have exchanged cease-and-desist letters, and WP Engine has now escalated the situation by filing a lawsuit against Automattic and Mullenweg, accusing them of "abuse of power," extortion, and conflicts of interest related to Mullenweg's role as a steward of the open-source WordPress project. Automattic, for its part, has denied all of WP Engine's claims. "I stayed up last night reading WP Engine's Complaint, trying to find any merit anywhere to it. The whole thing is meritless," said Neal Katyal, Automattic's legal representative.

Backlash and Accusations of Bullying

The tension hasn't just been confined to the courtroom. Social media has been abuzz with discussions about the severance offer, and Mullenweg himself has come under fire for alleged attempts to silence criticism. Former Automattic employee Kellie Peterson claimed that Mullenweg sent her a direct message on X (formerly Twitter), accusing her of attacking the company and its leadership after she posted about the situation.

"Matt Mullenweg, the CEO of Automattic, co-founder of WordPress, and single point of failure for WordPress.org, is trying to bully me with legal threats over my commentary regarding his recent behaviour," Peterson wrote in a blog post on Medium. She included screenshots of Mullenweg's direct messages, in which he asked her, "Why are you attacking me and Automattic publicly? I've never been anything but super nice to you, and we worked together for years."

Peterson responded by clarifying that her commentary was not intended as an attack, though she expressed concerns about some of Mullenweg's recent decisions. Despite their professional history, she urged him to reconsider the direction in which he is leading Automattic.

A Divided Workforce

Following the mass exodus, Automattic employees who chose to stay have voiced support for the company and its leadership. Some posted messages on social media, praising the company's handling of the situation and reaffirming their trust in Mullenweg.

While the company's future remains uncertain amid legal battles and internal unrest, Mullenweg remains focused on continuing the development of WordPress and its associated projects. He sees the departures as an opportunity for a fresh start and expressed optimism about Automattic's direction moving forward.