CEO Matt Mullenweg of Automattic has recently offered frustrated employees a buyout package as the company faces a significant dispute with rival WP Engine. The buyout package, which amounts to either $30,000 or six months’ salary, aims to encourage those unhappy with the company’s direction, particularly in relation to the ongoing conflict with WP Engine, to voluntarily leave. According to SFGate, Automattic, renowned for its web-hosting service WordPress.com, has witnessed a notable turnover of employees—159 in total—who have opted to resign after accepting this buyout offer. This decision highlights the tension and dissatisfaction amongst the staff regarding Mullenweg’s leadership and handling of the rival company’s aggressive tactics.
Mullenweg’s approach towards the buyout offer has been characterized as a chance for “alignment” within the organization. He acknowledged that many employees did not agree with his strategies during the intensifying feud with WP Engine. In a blog post, he presented the buyout as a proactive measure to create a more cohesive workplace environment. The buyout offer was labeled as the “most generous” he could devise, and it notably included an irrevocable clause that would prevent employees from returning to the company should they accept the package. This decision affected around 8.4 percent of the workforce, with 18 of those departing individuals holding salaries that significantly exceeded $200,000, resulting in some receiving post-tax severance checks that would surpass $100,000.
The tension between Automattic and WP Engine primarily stems from the open-source nature of WordPress software, co-created by Mullenweg. While he has significant influence over the software, the decentralized and community-driven foundation of open-source projects allows for varied interpretations and implementations by different companies. In September, Mullenweg escalated the rhetoric by accusing WP Engine and its financial backer, Silver Lake, of compromising the principles of open source for profit. This accusation marked the beginning of a rapid deterioration in their relationship, prompting Mullenweg to label WP Engine as a “cancer” within the industry. Furthermore, the companies exchanged cease-and-desist letters as hostilities intensified.
In the following weeks, legal actions between the two companies escalated quickly. WP Engine’s legal team responded to Mullenweg’s accusations, asserting that his claims were “outrageous,” “false,” and “misleading.” In retaliation, Mullenweg took steps to restrict WP Engine’s access to certain WordPress functions, showcasing the depth of their conflict. On a particular Wednesday, the feud reached a new climax when WP Engine filed a broad lawsuit against both Automattic and Mullenweg in the Northern District of California, outlining 11 distinct claims. These allegations included accusations of breaching agreements, intimidation tactics against WP Engine, and negative impacts on the entire WordPress community that relies on the software.
Despite the escalating tensions and ongoing legal proceedings, Mullenweg remains steadfast in his dedication to the principles of open source. He emphasized his lifelong commitment to advocating for open-source software and expressed concern over the actions of private equity-backed companies in the tech industry. Mullenweg’s fierce stance is driven by a desire to protect the integrity of the software that powers nearly 43 percent of all websites on the internet. His insistence on standing against perceived threats to the open-source ecosystem demonstrates his commitment to maintaining the ethos that many believe is fundamental to the success and collaborative nature of the software industry.
This confrontation between two significant players in the tech landscape raises critical questions regarding the future of open-source projects and the influence of private equity in technology. Mullenweg’s actions serve as a reminder of the tensions that can arise when corporate interests clash with community-driven principles. As Automattic continues to navigate this predicament, the outcome of the legal dispute with WP Engine may set important precedents for similar conflicts in the tech industry, with repercussions extending beyond these two entities and potentially affecting the wider WordPress community and stakeholders involved in open-source development.