A dispute in the WordPress ecosystem has sparked a massive exodus of Automattic employees, as the confrontation with WP Engine escalates into a legal battle.
In an unexpected turn in the world of web development, Automattic, the company behind WordPress.com, has lost 159 employees as a result of a conflict with WP Engine, a hosting provider specializing in WordPress. This situation has put the open-source community at stake, as both companies face off in court over the use and control of the WordPress brand.
Origin of the conflict
The confrontation began when Matthew Mullenweg, CEO of Automattic and co-creator of WordPress, publicly accused WP Engine of profiting disproportionately from the use of WordPress without contributing fairly to the development of the software. According to Mullenweg, while Automattic invests a considerable amount of resources in improving the system, WP Engine takes advantage of that effort without offering adequate compensation.
To resolve this situation, Automattic proposed to WP Engine a seven-year Trademark License Agreement, which included the payment of 8% of WP Engine’s gross monthly revenue to Automattic or the dedication of time equivalent to 8% to improving the WordPress code, or a combination of both. However, WP Engine rejected the proposal, arguing that their use of the WordPress brand fell under the concept of “fair use.”
Escalation of the conflict
WP Engine’s refusal led to a series of actions by Automattic. Mullenweg temporarily blocked WP Engine’s sites to prevent them from receiving theme and extension updates through WordPress.org, although the measure was lifted shortly after due to pressure from the developer community.
The situation escalated further when both companies exchanged cease and desist letters, and finally, on October 2, 2024, WP Engine filed a federal lawsuit against Mullenweg and Automattic. The allegations include attempts of extortion, defamation, interference with contractual relationships, computer fraud, and unfair competition. In addition, the lawsuit questions Mullenweg’s control over the registered WordPress trademark, which was donated to the WordPress Foundation, a non-profit entity, in 2010.
Impact on Automattic: massive employee exodus
Internally, the conflict has generated significant divisions within Automattic. The company offered a severance package to employees who did not agree with the direction taken. This package included compensation of $30,000 or six months’ salary, the higher amount, for those who decided to resign before October 3, 2024.
As a result, 159 employees, representing 8.4% of the workforce, chose to leave the company. Of these, 79.2% belonged to areas related to the WordPress Ecosystem, indicating a significant loss of talent in key sectors for the company’s operation. Furthermore, 18 employees earning over $200,000 annually also opted to accept the severance and leave Automattic.
Mullenweg’s Statements
Matthew Mullenweg commented on the employees’ departure, admitting that the legal attacks from WP Engine and their investor Silver Lake had made a noticeable impact. “Though the attacks are spurious, they have been effective,” he stated. He acknowledged that many of his colleagues at Automattic did not share his vision or support the actions taken in the dispute. However, Mullenweg expressed feeling “much lighter” after the employees’ departure, citing a famous quote from Winston Churchill: “Never let a good crisis go to waste.”
Perspectives and Future of the Conflict
The showdown between Automattic and WP Engine remains unresolved and is now in the hands of the courts. Automattic insists that the lawsuit is unfounded and that their actions are legal and justified. Meanwhile, the WordPress community watches with concern, as this dispute could have profound implications for the future of the open-source ecosystem, which has been crucial for web development for over a decade.
This conflict raises crucial questions about the sustainability of open-source software and the inherent tensions when commercial models clash with collaborative community principles. The monetization of free software and fair contributions have become significant issues in recent years, and this case could set an important precedent for the industry.
For now, the fate of the relationships between Automattic, WP Engine, and the WordPress community hangs by a thread, and the outcome of this litigation could redefine the rules of the game in the world of web development.