Automatic Word Mess

San Francisco-based Automattic, the company behind WordPress.com, has found itself at the center of a growing controversy that has shaken the tech community. For weeks, tensions have simmered between Automattic and one of its biggest competitors, WP Engine. What began as a clash over open-source principles has escalated into legal battles, public accusations, and now, the departure of a significant portion of Automattic's workforce.

On Thursday, CEO Matt Mullenweg, the co-creator of WordPress and the public face of Automattic, announced that 159 employees had accepted buyout packages and chosen to leave the company. The workers, comprising 8.4% of the company's staff, were given a stark choice: accept a severance package of $30,000 or six months’ salary (whichever was greater) and exit the company permanently. Many took the deal. Notably, 18 of those employees earned over $200,000 a year, meaning their severance checks exceeded $100,000 before taxes.

Mullenweg framed the exodus as an opportunity for “alignment,” expressing that the decision allowed Automattic to move forward with a more unified vision. However, the tone of his blog post announcing the news was striking. While most CEOs might mourn such an expensive departure of talent, Mullenweg described the moment as a positive turning point, stating, “every resignation stings a bit,” but adding that he now feels “much lighter.” His optimism extended to those who chose to stay: “I’m even more excited to work with those who turned down $126 million to stay.”

The sudden mass departure comes in the wake of weeks of drama between Automattic and WP Engine. What started as a war of words between the two companies quickly escalated into a full-blown legal confrontation. The dispute centers on the control and direction of WordPress, the open-source software originally co-created by Mullenweg. While Automattic operates WordPress.com, WP Engine and other companies also offer services around the WordPress software, which is used by millions of websites around the globe.

At the heart of the conflict is Mullenweg’s assertion that WP Engine, backed by private equity firm Silver Lake, has strayed from the open-source ideals that underpin WordPress. During a September conference, Mullenweg openly criticized WP Engine, urging the WordPress community to "vote with their wallet" and consider who truly supported the health of the platform. He warned that private equity interests could "frack every bit of value" out of WordPress, likening WP Engine to a destructive force that could harm the ecosystem.

In a series of escalating actions, Mullenweg accused WP Engine of being a “cancer” within the community, prompting a heated response. WP Engine fired back with cease-and-desist letters and later filed a lawsuit against Automattic and Mullenweg in the Northern District of California. The lawsuit, which spans 11 different claims, pulls no punches: it accuses Automattic of “abuse of power, extortion, and greed,” and asserts that Mullenweg’s personal attacks are damaging not only to WP Engine but to the entire WordPress ecosystem.

WP Engine’s legal team described Mullenweg's actions as “false, misleading, and disparaging” and claimed he is exploiting his dual roles as both a leading figure in the WordPress community and the CEO of Automattic. According to WP Engine, this creates an untenable conflict of interest that Mullenweg has used to the detriment of the community he claims to protect.

In response, Mullenweg escalated the conflict by removing WP Engine’s access to certain WordPress tools, a move that directly affected WP Engine's customers. To further bolster his side, Mullenweg recorded a two-hour interview with a developer who had previously criticized his behavior, presenting his stance as a defense of open-source values.

The legal and ethical battles between the two companies reached a new peak on Wednesday when WP Engine officially filed its lawsuit. The legal filing argues that Automattic and Mullenweg have caused harm to WP Engine and are attempting to bully them out of the marketplace. Meanwhile, Automattic, in a statement, remained defiant, claiming the lawsuit is “meritless” and that they look forward to defending themselves in court.

With 159 employees walking out of Automattic this week, the drama shows no signs of slowing down. Mullenweg’s blog post, while upbeat, hints at the emotional toll the conflict has taken. He acknowledged the stress of the past few weeks, describing it as an “emotional roller coaster.” While he maintains that the staff departures were voluntary and well-compensated, it’s clear that the internal divide at Automattic mirrors the external conflict playing out with WP Engine.

Beyond the drama, the legal battle between Automattic and WP Engine raises important questions for the future of WordPress. As an open-source platform, WordPress has thrived because of its global community of contributors and its ideals of accessibility and collaboration. But as commercial interests continue to grow around it, especially with companies like WP Engine and their private equity backers, tensions about the direction of the platform are inevitable. Mullenweg’s defense of open-source ideals may be noble, but critics question whether his leadership at Automattic is blurring the line between championing a movement and leveraging it for corporate gain.

Whatever the outcome of this legal fight, Automattic's workers who opted for the buyout have been handsomely compensated for their role in the drama. Whether this marks a fresh start for the company or the beginning of deeper challenges remains to be seen.

As the situation continues to evolve, one thing is certain: the battle over WordPress is far from over, and the stakes for the open-source movement have never been higher. For now, Mullenweg seems prepared to press on — with fewer employees but an unshaken resolve to defend the principles that built WordPress. Whether his strategy will succeed, or backfire, is a story still being written.