A total of 159 employees are departing Automattic as the company’s high-stakes conflict with WP Engine intensifies, culminating in a formal lawsuit and mutual legal threats.
Legal Battle Escalates: Lawsuit Filed
The friction between the two organizations reached a breaking point this Thursday when WP Engine filed a lawsuit against Automattic and CEO Matt Mullenweg. The legal action alleges “abuse of power” and extortion, further claiming that the WordPress co-creator faces significant conflicts of interest regarding his management of the open-source project.
Automattic has dismissed these allegations entirely. In a blog post, the company’s legal representative, Neal Katyal, stated: “I stayed up last night reading WP Engine’s Complaint, trying to find any merit anywhere to it. The whole thing is meritless, and we look forward to the federal court’s consideration of their lawsuit.”
Internal Turmoil and Severance Offers
Tensions appear to have spilled over into Automattic’s internal operations. Throughout the week, several social media users on X have hinted at a voluntary severance package being offered to the company’s workforce. Reports also suggest that Mullenweg allegedly sent direct messages to a former employee who discussed the offer, accusing her of attacking both him and the company.
Divided Sentiments Among Staff
The atmosphere within the organization remains polarized. Today, some Automattic employees who chose to remain with the firm took to social media to post messages expressing their continued support for Mullenweg and the company’s direction.
