8.4% of Automattic Staff Depart as Company Faces Legal Battles and Potential Fork of WordPress
Automattic, the parent company of WordPress, recently announced that 8.4% of its staff, 159 employees, have left the company. This significant move comes amidst growing tensions between Automattic and WP Engine, a major player in the WordPress hosting space. The departures, alongside a high-profile legal dispute, are fueling speculation about the future of the WordPress ecosystem and the potential for a fork in the platform.
Automattic's Severance Offer: 159 Employees Depart
Automattic CEO Matt Mullenweg revealed that 159 employees, representing 8.4% of the company’s workforce, accepted a generous severance package. The offer was made to those who disagreed with Mullenweg's direction for WordPress, particularly in light of the ongoing conflict with WP Engine. The package, labeled the "Alignment Offer," provided $30,000 or six months of salary—whichever was greater—on the condition that departing employees would not be eligible for re-hire at Automattic.
A majority of the employees who left were from Automattic’s WordPress division, accounting for nearly 80% of the departures. The remaining employees were part of other Automattic ventures such as Pocket Casts, Tumblr, and Day One.
Conflict with WP Engine: The Core Dispute
The root of this organizational shift lies in a conflict between Automattic and WP Engine, a prominent WordPress hosting service. Mullenweg has publicly accused WP Engine of misusing the WordPress trademark and taking advantage of the platform without sufficiently contributing to its development. This culminated in Mullenweg’s bold decision to block WP Engine customers from accessing WordPress.org resources, a move that affects millions of users who rely on WP Engine for critical updates to plugins and themes.
The conflict has now escalated into a legal battle, with WP Engine filing a lawsuit against Automattic. The lawsuit includes claims of abuse of power, extortion, and conflicts of interest. Automattic, represented by prominent attorney Neal Katyal, has called the lawsuit "meritless," but the fallout from this legal clash is only beginning.
Legal Developments and Public Reaction
The legal battle between Automattic and WP Engine is shaping up to be a significant chapter in WordPress’s history. WP Engine's lawsuit challenges Automattic’s control over the WordPress ecosystem, and the case could have lasting effects on how open-source projects like WordPress are managed and monetized. Additionally, public sentiment is becoming polarized. Some former Automattic employees have spoken out about the severance package on social media, while others have publicly supported Mullenweg and the company’s direction.
Implications for the Open-Source Ecosystem
The Automattic-WP Engine dispute is causing ripples throughout the broader open-source and CMS (content management system) landscape. WordPress powers more than 40% of all websites, making any disruption in its ecosystem significant.
Fragmentation of the WordPress Community
One of the major concerns stemming from this conflict is the potential fragmentation of the WordPress community. Mullenweg’s decision to block WP Engine from using WordPress.org resources has led to speculation that hosting companies, developers, and users might begin exploring alternative CMS platforms. Competitors like Joomla, Drupal, or even custom-built solutions could attract WordPress users who are wary of Automattic’s increasingly centralized control.
The Threat of a WordPress Fork
Another looming possibility is a fork of WordPress. If developers and contributors become disillusioned with Automattic’s leadership, they may create an alternative version of WordPress, much like LibreOffice was born from OpenOffice. Such a move could lead to a fractured community, where collaboration becomes more difficult, and the innovative momentum of WordPress stalls.
Economic and Industry Impact
The legal and public relations fallout is not just affecting Automattic and WP Engine—it’s sending shockwaves through the web hosting industry and beyond.
WP Engine’s Growth and Potential Customer Exodus
WP Engine has been on a growth trajectory, with revenues reportedly reaching over $400 million annually. However, being cut off from WordPress.org resources could damage its business, potentially leading to a significant customer exodus. Many of WP Engine’s customers depend on seamless access to WordPress.org for plugin and theme updates, and the disruption could drive them to other hosting providers.
Automattic’s Reputation and Long-Term Stability
For Automattic, the situation poses reputational risks. Even though Mullenweg has positioned himself as a strong leader defending WordPress, his aggressive tactics may alienate developers and users who feel uncomfortable with the company's approach. Investors and partners could also start questioning the long-term sustainability of a company that faces internal discord, as evidenced by the 159 employees who opted to leave.
Potential Shifts in the Hosting Industry
The web hosting industry is closely watching the developments between Automattic and WP Engine. Hosting companies that cater to WordPress users may need to reconsider their business models if Automattic’s control over the WordPress ecosystem tightens.
Price Competition and Market Realignment
If WP Engine’s position weakens due to the conflict, other hosting providers like Kinsta, Bluehost, and even Amazon Web Services (AWS) may benefit from a redistribution of market share. This could lead to increased competition, particularly in the premium hosting market, with price cuts and service enhancements becoming key competitive strategies.
Strategic Partnerships and CMS Alternatives
There is also the potential for new strategic partnerships between hosting providers and alternative CMS platforms. As trust in WordPress's centralized control wanes, some hosting companies may look to support other CMS solutions, including headless CMS systems like Strapi and Contentful. These platforms, which offer more decentralized control over website development, could stand to gain market share as businesses seek more flexible options.
Legal and Regulatory Trends
The WP Engine lawsuit is raising important questions about trademark usage, licensing, and the management of open-source projects. The legal battle could set a precedent for how open-source software is commercialized and controlled in the future.
Antitrust Concerns
Some in the WordPress community are already calling for an antitrust investigation into Automattic. Mullenweg’s consolidation of power over WordPress, and his aggressive tactics toward competitors like WP Engine, could attract the attention of regulatory bodies. If the case gains traction, it could lead to new legal constraints on how Automattic operates within the ecosystem.
Trademark Usage and Licensing
The outcome of the WP Engine lawsuit could also reshape how open-source projects manage their trademarks. If WP Engine is forced to pay for the use of the WordPress brand, other companies may be required to do the same. This could raise operational costs for businesses that rely on open-source platforms and limit their ability to compete.
Conclusion: The Future of WordPress and CMS Market
The ongoing battle between Automattic and WP Engine has far-reaching implications for the future of WordPress and the broader CMS and web hosting markets. With a potential WordPress fork on the horizon, shifts in customer preferences, and new legal precedents being set, businesses, developers, and users alike are watching closely to see how this conflict evolves. As the landscape changes, opportunities may emerge for alternative CMS platforms, hosting solutions, and legal services, but uncertainty remains the dominant theme as this high-stakes drama plays out.