Janice R. Andrews
Automattic, led by WordPress co-founder Matt Mullenweg, has lost 159 employees—8.4% of its workforce—following a contentious lawsuit with web host WP Engine. The legal battle centers on allegations of extortion, power abuse, and greed against Mullenweg.
In response to the lawsuit, Mullenweg offered staff a generous voluntary severance package: $30,000 or six months’ pay, whichever was higher. Most departures came from Automattic’s WordPress-related divisions, with some from subsidiaries like Tumblr and Cloudup. Mullenweg attempted to frame the situation positively, noting that 91.6% of employees declined $126 million in potential severance.
The dispute stems from WP Engine’s alleged misuse of the WordPress trademark. Mullenweg claims the company refused to pay licensing fees or contribute to the open-source project. The WordPress Foundation updated its trademark policy, specifically mentioning WP Engine’s lack of contributions despite profiting from WordPress.
Mullenweg retaliated by blocking WP Engine’s access to crucial WordPress plugins and themes, disrupting many of its hosted sites. WP Engine countered with accusations of Mullenweg demanding 8% of their monthly revenue and alleged violations including libel and computer fraud.
Automattic’s attorney, Neal Katyal, dismissed the lawsuit as baseless. This high-profile conflict has created a rift in the WordPress community and is expected to have significant consequences for both companies involved.
