159 employees are leaving Automattic as CEO’s fight with WP Engine escalates
Automattic has seen 159 employees leave after accepting a severance package amid rising tensions with WP Engine, which has led to legal disputes and mixed reactions from remaining staff.
Read original articleAutomattic is experiencing significant staff turnover as 159 employees, approximately 8.4% of its workforce, have accepted a severance package amid escalating tensions between CEO Matt Mullenweg and web hosting provider WP Engine. The severance offer, termed an "Alignment Offer," provided employees with either $30,000 or six months' salary, with the stipulation that those who accepted would not be eligible for rehire. Most of the departing employees were from the Ecosystem/WordPress division. Mullenweg characterized the situation as an emotional challenge, emphasizing the company's effort to create a generous buy-out package. The conflict with WP Engine has intensified, with Mullenweg labeling the company a "cancer to WordPress" and accusing it of misusing trademarks. WP Engine has responded with a lawsuit against Automattic and Mullenweg, alleging abuse of power and extortion, which Automattic has dismissed as meritless. The ongoing dispute has led to a divided response among Automattic employees, with some expressing support for Mullenweg and the company.
- 159 employees left Automattic after accepting a severance package.
- The severance offer was designed to be generous, providing significant financial incentives.
- The conflict with WP Engine has escalated, resulting in legal actions from both sides.
- Mullenweg has publicly criticized WP Engine, leading to a contentious relationship.
- Employee reactions to the situation have been mixed, with some supporting the company's leadership.
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For scale, Automattic has previously indicated that "over 100" people work on WordPress full time [0]. How many of those ~100 were part of the 126 WordPress employees who left?
[0] https://wordpress.com/blog/2024/09/26/our-wordpress-contribu...
Everyone is using the Wordpress trademark to promote their service and the plugins library to keep their services updated. If that's the legal precedent being used now, Automattic winning the lawsuit implies that nearly the entire community loses it's legal right to exist.
> 159 people took the offer, 8.4% of the company, the other 91.6% gave up $126M of potential severance to stay!
That is an interesting (meritful, imo) way of putting it.
There is a Reddit user right now:
https://www.reddit.com/user/r_mutt1917/
They’re making some very rude statements about the people who accepted the severance package.
Not too long ago, there was this unspoken rule amongst humans where we don’t trash a large group of former coworkers in public like that. We wouldn’t speak in absolutes about large groups of people. We had class.
And now I see this person who has trashed everyone who left. They apparently aren’t allowed to state what division they’re in. But trashing over 100 people seems to be okay. I cannot imagine a single functional organization approving of such a thing.
I haven’t used Wordpress in a very long time. But I had a lot of respect for Automattic. My hope is that I don’t have to keep the verb in the past tense.
Somewhere along the lines, we lost a lot of our humanity. It is very embarrassing to think that we traded humanity for social media likes.
I've really enjoyed some of the jobs I've had, but find it hard to imagine a world where I wouldn't accept a six-month payoff.
We actually had a contingency plan to just leave WP Engine and fix our wordpress up, but in light of Matt’s nonsensical actions we have scrapped that option.
Congrats to these employees on fleeing what appears to be tyranny for the Automattic employees and the customers.
Good riddance Wordpress.
To recap, in the lawsuit post, someone said about the law firm WP Engine got:
> Quinn Emanuel is one of the premier (and most expensive) litigation firms in the US. Partners in their litigation department run $2000/hour or more. Associates cost almost $1000/hour.
And I noted the team is lead by Rachel Kassabian who was lead counsel for Google which in Perfect 10 v Amazon (originally it was against Google) resulted in thumbnail of copyright images in search results being fair use.
Automattic chose Neal Katyal. His latest accomplishment was trying to defend Johnson & Johnson 's dicey "Texas Two-Step" and lost while billing $2,465 an hour.
A hell lot of money will be spent on this case, that's for sure.
I think these people really overestimate how much people give a shit about their company and what they are doing. Automattic is a sweet remote first shop which pays well - albeit I've heard you have to drink plenty of BS in day to day job.
Attacking WP Engine and preventing them to access OSS (which is not even OSS if you can ban people you don't like) was moronic enough, but this tops that.
I wonder who the hell advises these people - or maybe they're rich enough they just don't listen to anyone.
Mullenweg doesn't explain when the offer was announced, but the earliest I can imagine is the Monday after he blocked WPE customers from accessing wordpress.org, which would mean employees had a max of four days to consider this deal. If it was after the WPE lawsuit, then employees had less than a day to consider it.
For comparison, when Basecamp did this in 2021, they originally had a deadline for the offer but extended it indefinitely.[0]
It's interesting to compare the way DHH presents the buyouts to the way Mullenweg does. Here's DHH[1]:
>Yesterday, we offered everyone at Basecamp an option of a severance package worth up to six months salary for those who've been with the company over three years, and three months salary for those at the company less than that. No hard feelings, no questions asked. For those who cannot see a future at Basecamp under this new direction, we'll help them in every which way we can to land somewhere else.
DHH's explanation of the buyout feels gracious and that he genuinely wished well to the employees who accepted the buyout.
Mullenweg explaining his buyout just feels like a petty tyrant purging anyone who won't pledge loyalty to him. He highlights the tight deadline and the immediate shunning of employees who take the deal. He uses the word "enticing" as if the employees who accept the deal are the weak-willed ones who succumbed to temptation.
[0] https://www.theverge.com/2021/5/3/22418208/basecamp-all-hand...
On the other hand, most companies easily have at least 20% headcount overhead, so it'll be okay.
Like never eligible? That seems kind of petty. I would understand some timeframe, like "not eligible for 3/4/5 years", but a permanent ban seems weird.
That sounds bad
Related
Matt Mullenweg needs to step down from WordPress.org leadership ASAP
Matt Mullenweg criticized WP Engine at WordCamp US, calling it damaging to WordPress. His remarks led to calls for his resignation, raising concerns about his leadership's impact on the community.
WordPress Drama: From the Sidelines
Tensions between WP Engine and Automattic escalated into a legal dispute after Matt Mullenweg criticized WP Engine's contributions, leading to revoked API access and concerns about WordPress's future.
The messy WordPress drama, explained
Matt Mullenweg criticized WP Engine for exploiting the WordPress ecosystem, leading to legal threats and access restrictions for its customers, while the community remains divided over the implications for WordPress's future.
Mullenweg threatens corporate takeover of WP Engine
Automattic CEO Matt Mullenweg has revoked an 8% licensing deal with WP Engine, criticizing its contributions to WordPress and hinting at a takeover, while WP Engine has responded with legal action.
Automattic–WP Engine Term Sheet
Automattic has refuted claims of demanding money from WP Engine, seeking instead a revenue-sharing agreement to support WordPress, while documenting 20 months of unresponsive communications from WP Engine.