Should Matt Mullenweg’s Employee Ultimatum Set the Bar for Leadership? Here’s What You Should Know and Do

When Automattic’s CEO Matt Mullenweg gave employees an ultimatum, declaring that those who spoke to the press could face immediate termination without severance, it sparked a firestorm of debate.

This wasn’t just about enforcing a company policy—it raised key questions about leadership, workplace culture, and employee rights.

This situation feels straight out of a corporate thriller, one where an employee is faced with a serious ultimatum at work.

So, how should employees respond when given an ultimatum like this?

What are their rights, and what can they do when an employer gives them an ultimatum that feels like a threat to their job security?

The Drama at Automattic

Imagine working for one of the most influential tech companies, the parent of WordPress, known for its open-source principles.

Suddenly, conflict erupts over a legal dispute with WP Engine, and your boss gives you an “alignment package”—leave with a severance or commit fully to the company's vision.

It sounds reasonable, until the catch: if you leak information to the press, you're fired—no severance, no sympathy.

The situation feels like an employee ultimatum, one that forces you into a stark choice, creating a tense, almost lethal environment in the workplace.

This isn’t just an example of an ultimatum—it’s a drastic measure that could break trust and alienate employees.

During this period of unrest, Automattic saw 159 employees—about 8.4% of its workforce—accept buyouts to leave quietly.

Mullenweg positioned this as a way to align the company’s direction, but his warning about speaking out suggests something deeper: a culture potentially rooted in fear, rather than collaboration.

Bold Leadership or Overbearing Control?

Mullenweg’s actions raise an important question: is this kind of leadership justified, or does it go too far?

On one hand, managing internal communications is crucial to protect a company’s reputation.

But firing an employee for speaking out, especially without severance, seems like an employer giving an employee an ultimatum that leaves little room for dissent.

Critics argue that this undermines the open-source principles WordPress was built on, prioritizing control over dialogue.

In a company that champions democratizing publishing, this policy feels like a paradox, and it may create a toxic work environment where employees are too fearful to speak up.

What Should Employees Do?

If you find yourself in a situation where an employer threatens you with an ultimatum, what’s the best way to respond?

Whether you’re working for Automattic or another company, here are a few steps to consider when faced with this kind of pressure:

1. Know Your Rights

Employment laws vary by jurisdiction, but many places have laws protecting employees from retaliation, especially if the information leaked is related to ethical violations or legal concerns.

If you feel your boss gave you an ultimatum that’s legally questionable, it might be worth consulting an employment attorney.

2. Document Everything

Keep a record of communications, including any ultimatum at work from your employer.

Something as simple as a message from your CEO can become crucial evidence in the future.

Documenting everything could be key if a dispute arises later on.

3. Evaluate Your Position

Weigh the risks of staying at the company versus leaving.

If you feel the environment is hostile and your employer has created a lethal company culture, a severance package might offer you the opportunity to find a better fit elsewhere.

4. Speak Through the Right Channels

If you have concerns, consider speaking through proper internal channels first, such as HR or an ombudsman.

However, if these routes fail, there are often legal protections for whistleblowers who choose to go public.

Just be cautious and weigh the consequences carefully.

5. Strength in Numbers

If you feel isolated, you may want to approach the situation collectively with other employees.

Discussing the company’s reward policy or potential perks tax implications with colleagues could lead to collective action, which may offer more safety and strength in addressing unfair policies.

The Bigger Picture: What Does This Mean for Work Culture?

Now, over to you

How would you respond if your boss gave you an ultimatum?

Should employees stay silent in these situations, or do they have a responsibility to speak out, especially when there’s a risk of a lethal company culture emerging?

Let’s hear your thoughts.