Automattic has put on hold its plan to migrate Tumblr’s backend to WordPress and integrate fediverse functionality, as announced by CEO Matt Mullenweg on the Decoder podcast. The decision shifts focus to more immediately visible user features, thereby delaying efforts to provide decentralized, censorship-resistant communication platforms.

According to employees and reports from tech outlet 404, Automattic covertly inserted individually unique watermarks on its internal intranet communications (P2) to identify potential press leaks, a move that has fostered a climate of paranoia and demoralization among staff.

Following significant layoffs and repressive internal surveillance practices at Automattic, employees have raised concerns regarding forced loyalty and punitive measures. The company’s use of nearly invisible, individually-unique watermarks on its internal P2 communication platform is seen as a tool to identify and potentially target employees who leak sensitive information. These actions, combined with aggressive buyout offers and threats of termination without severance, have created a climate of insecurity and demoralization among staff.

Automattic's campaign finance profile for the 2024 cycle reports contributions totaling $214,127 with no recorded lobbying or outside spending, as detailed by OpenSecrets. The data, reflecting figures released by the FEC and other authorities, indicates a neutral financial political behavior without clear ties to authoritarian or far‐right causes.

Automattic's political donation data for the 2024 election cycle, derived from FEC records and aggregated by OpenSecrets, shows the company's commitment to transparent political engagement. While the specific ideological leanings of donation recipients are not detailed in the report, the public disclosure aligns with efforts to maintain corporate accountability in political contributions.

Approximately six months prior to the watermarking controversy, Automattic's CEO, Matt Mullenweg, mandated that employees pledge loyalty in support of his legal battle with WP Engine or accept a severance package, further contributing to internal dissent and a climate of authoritarian control.

Automattic CEO Matt Mullenweg announced a generous severance package amid an ongoing public dispute with WP Engine, leading 159 employees—primarily from the Ecosystem division—to accept the offer after disagreeing with his leadership direction. The move came during a turbulent period marked by heated exchanges and legal threats between Automattic and WP Engine.

Automattic refused to remove the Flow HK website after receiving a directive from Hong Kong police, effectively resisting government pressure to enforce arbitrary censorship and upholding freedom of expression as outlined under the UN Guiding Principles on Business and Human Rights.

In response to reports suggesting it might sell Tumblr and WordPress.com user content to AI companies, Automattic has introduced a new tool that allows users to opt out of sharing their publicly available content with AI partners. The company stresses that only content from sites that have not opted out will be shared, thereby reinforcing user control and privacy.