### Breaking News: Automattic CEO Matt Mullenweg Faces Backlash as 8.4% of Employees Accept Severance Package
In a surprising turn of events, Automattic CEO Matt Mullenweg revealed that 159 employees, approximately 8.4% of the company's staff, have accepted a generous severance package. This decision comes amidst disagreements over Mullenweg's leadership direction and a tussle with web hosting provider WP Engine.
The package offered $30,000 or six months of salary, whichever is higher, but those who accepted it will not be eligible for re-hire at Automattic. The majority of employees who took the offer were from the company's Ecosystem/WordPress division, with the remaining from Automattic's Cosmos businesses, including popular apps like Pocket Casts, Day One, Tumblr, and Cloudup.
Mullenweg attempted to frame the announcement in a positive light, referring to the severance package as an "Alignment Offer." He expressed mixed emotions about the departures, acknowledging the impact of losing valuable team members.
The controversy between Automattic and WP Engine has escalated, with both companies exchanging cease-and-desist letters. WP Engine recently filed a lawsuit against Automattic and Mullenweg, alleging abuse of power and conflicts of interest in managing WordPress as an open-source project.
Despite the legal battle, Automattic has dismissed WP Engine's claims as baseless. The company's legal representative, Neal Katyal, emphasized the lack of merit in the allegations and expressed confidence in the federal court's review of the lawsuit.
In a show of solidarity, some Automattic employees who chose to remain with the company have voiced their support for Mullenweg and Automattic.
### Analysis:
The rift between Automattic and WP Engine has resulted in a significant number of employees opting for a severance package, reflecting underlying tensions within the organization. This development could impact Automattic's operations and future decisions, potentially influencing its position in the market and relationships with stakeholders. Investors and industry observers will be monitoring the situation closely to assess the implications for Automattic's financial performance and reputation in the tech industry.