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As Casey Newton reported a few days later, employees said that the policy change arose from an employee-led diversity and inclusion effort. Newtown reported that over a third of the 58-member staff volunteered to create more inclusive hiring practices and business relationships.

The effort led to a call for the company to address an 11-year-old inside joke with racist overtones. Starting in 2009, Newton reported, customer service representatives compiled a running list of customer names they found funny. This stopped being funny when the list started including names that were apparently funny because they sounded non-European American. This led to employee calls for atonement; Hansson told Newton that he and Fried shared the blame and that the list is “just wrong in all sorts of fundamental ways.” But when that didn’t end the discussion, Hansson reportedly tried to shut down an employee’s view by snarkily reposting an old message from the chat archives, in order to supposedly implicate them, employees balked, and hence the policy update.

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We’re not sure exactly what happened in today’s meeting, but employees are attributing their decision to leave to “recent changes and new policies.” Gizmodo has reached out to the co-founders and several Basecamp employees who’ve announced their departure on Twitter. We’ll update this post when we hear back.