Matt Mullenweg, the CEO of Automattic, the company behind WordPress.com, recently faced a challenging week marked by internal conflict and significant staff turnover. Following a contentious legal dispute with rival WP Engine, Mullenweg found himself at the center of an employee backlash that prompted him to offer an unprecedented buy-out package. The offer of either $30,000 or six months’ salary, whichever was greater, resulted in the departure of nearly 10% of Automattic’s workforce, highlighting the depth of discontent among employees.
Mullenweg acknowledged the emotional impact of this week, describing it as an “emotional rollercoaster.” Despite the difficulties, he has adopted a positive outlook, expressing gratitude for both those who chose to leave and those who remained committed to the company.
Disagreements Spark Mass Resignation
The turmoil at Automattic stemmed from differing views on how to handle a legal dispute with WP Engine. Mullenweg publicly criticized WP Engine, accusing the company of prioritizing profit over the fundamental principles of open-source software. This conflict escalated when WP Engine filed a lawsuit against Automattic and Mullenweg, leading to heightened tensions within the company.
As discussions intensified, it became clear that a significant number of employees disagreed with Mullenweg’s decisions. In a bid to address the unrest, he introduced what he called the “Alignment Offer.” Quoting Winston Churchill, he stated, “Never let a good crisis go to waste,” and emphasized that the buy-out package was designed to be as generous as possible. Employees had until October 3, 2024, to decide on the offer, with the understanding that accepting it would mean losing access to the company and being ineligible for rehire.
Significant Workforce Reduction
By the deadline, 159 employees—approximately 8.4% of Automattic’s staff—accepted the buy-out. This included 18 employees who had annual salaries over $200,000, resulting in pre-tax severance checks exceeding $100,000. Mullenweg noted that most departures were from the Ecosystem and WordPress divisions, while fewer came from other product teams like Cosmos, which includes apps such as Pocket Casts and Tumblr.
The CEO reflected on the emotional weight of the resignations, acknowledging that every departure “stings a bit.” Yet, he expressed relief after the mass exodus, stating he felt “much lighter” as the company could now focus on those committed to its future. Mullenweg expressed his appreciation for those who accepted the offer and his excitement for those who chose to stay despite the substantial severance packages.
Legal Battle Escalates Tensions
The employee departures were part of a larger saga that had been unfolding for weeks. The conflict with WP Engine intensified when Mullenweg accused the company of undermining the WordPress ecosystem for profit. At a conference, he urged the community to “vote with your wallet” and support companies that respect open-source values, calling WP Engine a “cancer” within the community.
In retaliation, WP Engine filed a lawsuit against Automattic and Mullenweg, alleging abuse of power and extortion. The suit includes 11 claims, asserting that Automattic unlawfully restricted WP Engine’s access to essential WordPress tools.
Despite the challenges, Mullenweg remains optimistic about Automattic’s future. He views the departure of 8.4% of the workforce not as a setback but as an opportunity to realign the company with its core values. The buy-out package was crafted to foster a more cohesive and dedicated workforce, and Mullenweg is confident that Automattic will emerge stronger from this ordeal.
Comments are closed.