USA 
United Kingdom
Automattic, the parent company of well-known content management software WordPress, has been accused by staff of covertly watermarking internal communications in a bid to catch out possible press leaks.
According to tech media outlet 404, which reportedly spoke with Automattic employees, the move comes after an extensive witch hunt for individuals who have been disclosing confidential internal developments to the media.
Employees said the alleged watermarking has created a culture of paranoia and demoralized the workforce.
Employees accuse Automattic of watermarking internal comms
The watermarks were reportedly identified by employees on pages hosted on Automattic’s all-in-one Intranet, internal communications, and workflow management platform, P2.
Hundreds of P2 sites – including a mix of company-wide and team-specific pages – feature ‘individually-unique’ watermarks that are scarcely visible at first glance, 404 reported.
Employees claimed that patterns were overlaid on white page backgrounds, and can only be spotted by zooming in on the site or changing the background colour.
Such watermarks would, in theory, allow Automattic to identify an employee if they leaked a screenshot to a media outlet that was subsequently published.
The alleged measure has gone down badly with employee, with one stating that while no one is shocked, it has contributed to a demoralized and uncertain atmosphere.
“[I] can’t help but feel even more paranoid now,” they told 404.
Accusations of internal communication watermarking come amid ongoing turbulence at the tech firm, with trust and morale plummeting after 300 jobs were cut earlier in April. 16% of Automattic’s workforce were laid off in the downsizing.
Six months ago, Automattic’s embattled Founder and CEO, Matt Mullenweg, caused a stir after he ordered staff to pledge their loyalty to his ongoing legal battle with WP Engine, or to accept an ‘alignment offer’ and leave the company.
“It became clear a good chunk of my Automattic colleagues disagreed with me and our actions,” he wrote in an internal blog. 159 employees accepted an offer of $30,000 or six months’ pay to leave the firm immediately.
Delivering Consistent HR Services for Deskless Workers
Can HR truly reach every employee — whether office-based, hybrid or deskless?
Deskless workers represent ~80% of the global workforce, yet most HR systems were designed for desk-based employees.
This ebook explores how to build a multichannel HR service delivery strategy — combining portals, mobile apps, email and conversational interfaces — to deliver consistent HR services, improve accessibility, and create a seamless employee experience across the entire workforce.
Based on research conducted by Neocase with clients and stakeholders in the industrial sector, it highlights practical insights on:
Why deskless environments reveal structural gaps in HR service delivery
Why multichannel HR requires governance, not just more channels
How mobile-first access can transform frontline HR interactions
What you will learn from this eBook:
How to reach employees without desk access
How to structure HR service delivery across sites
How to reduce HR workload from employee requests
Real examples from large organizations
The number of staff who exited the firm during the buyout offers left Automattic very “short-staffed,” Mullenweg said.
404 reportedly heard from staff that those who remained were either “people who unequivocally support Matt's actions, and people who couldn't leave because of financial reasons (and those are mostly silent).”
Forensic watermarking for internal communications – the risk for employers
Forensic watermarking is a tool used by some employers, including Apple and Tesla, to ensure emails, internal communications, and confidential files are not leaked to the media.
According to the Ponemon Institute, insider incidents cost US businesses an estimated $17.4million in 2024, up from $16.2million in 2023.
Experts argue that insider leaks pose a risk to businesses when confidential information is leaked to competitors or the media, potentially leading to reputational damage, poor workplace morale, and a culture where crucial transparent communication is avoided.
However, while some argue that watermarking tools can help employers communicate more freely with employees, covert use of the technology undoubtedly brings the risk of damaged trust and low demoralization.
On the broader issue of workplace surveillance, according to a 2025 ExpressVPN study, more than 77% of workers believe companies should be legally required to disclose all forms of monitoring.
Discussing the findings, Lauren Hendry Parsons, Digital Privacy Advocate at ExpressVPN, said surveillance is “clearly eroding trust and morale in the workplace.”
“As companies adopt increasingly invasive tools, they risk losing the loyalty and well-being of their workforce,” Parsons added. “Employees are demanding accountability, transparency, and respect for their privacy.”
The claims levelled by Automattic employees, alongside the reported impacts of paranoia, uncertainty, and demoralization, demonstrate the possible risks of undisclosed watermarking on internal communications.
