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Automattic CEO Mullenweg offers surprise nine-month severance package amid internal turmoil

In a sudden move late on October 16, Automattic CEO Matt Mullenweg offered employees a nine-month severance package for those willing to quit immediately. However, employees had only four hours to make their decision. This offer follows an earlier severance deal that led 159 employees, including top executives, to leave the company.

Mullenweg announced the offer via Slack, stating that employees who accepted it would lose access not only to Automattic but also to WordPress.org.

Consequently, this would prevent them from contributing to the open-source project under their current ID. Since Mullenweg controls both Automattic and WordPress.org, this decision has significant implications for those deeply involved in the WordPress ecosystem.

Moreover, Mullenweg noted that some employees regretted missing the previous severance window, which prompted him to provide this brief opportunity. Employees were instructed to direct message him with the words, “I resign and would like to take the 9-month buy-out offer.” By the end of the night, Automattic’s headcount dropped from 1,732 to 1,731.

Meanwhile, this offer comes amid a heated conflict between Automattic and hosting provider WP Engine. Mullenweg’s public statement calling WP Engine “a cancer to WordPress” has escalated into a legal battle involving cease-and-desist letters and trademark disputes.

As tensions continue to rise, both internally and externally, Mullenweg’s severance package suggests deeper divisions within the company. While the conflict between Automattic and WP Engine intensifies, it remains uncertain how many more employees will choose to take the offer and exit the company.

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