WordPress Vs WP Engine: Automattic Offers 9-Month Severence Package to the Quitting Employees

Automattic, the San Francisco-based global technology company that provides innovative web solutions including the popular opensource content management system (CMS) WordPress and E-commerce solution WooCommerce , earlier this month introduced a solution to quell internal unrest amid ongoing tussle with WP Engine, a WordPress hosting service provider from Austin, Texas. As a result of which, WordPress’s 159 employees departed from the company – taking a six-month severance package which was offered by Automattic CEO Matt Mullenweg.

LAFFAZ Media
LAFFAZ Media

Just days later, On October 16, Automattic presented an enhanced offer, a nine-month severance package for immediate departures. Employees had a brief four-hour window to consider and accept this revised proposal.

Mullenweg revealed in a Slack message, that employees accepting the severance package would face significant consequences. They would lose access to both Automattic and WordPress.org, effectively barring them from contributing to the open-source project under their existing identities. This decision would essentially exclude departing employees from the WordPress community. Earlier, the news of the deal was reported by 404 Media.

Matt Mullenweg offered a severance package with just four hours’ notice. Employees interested in the nine-month buyout were required to DM him with, “I resign and would like to take the 9-month buy-out offer.”

“You don’t have to say any reason or anything else. I will reply ‘Thank you.’ Automattic will accept your resignation, you can keep your office stuff and work laptop. You will lose access to Automattic and Worg.” said Mullenweg

“I guess some people were sad they missed the last window,” he added

At the time of publication, Automattic had not provided a comment on the severance package. The uptake of the new offer remains unclear. However, the company’s website indicates a slight reduction in headcount, from 1,732 to 1,731, suggesting that at least one employee accepted the severance package.

Mullenweg targeted employees with differing views on Automattic’s WP Engine dispute with his initial severance package. The first wave of departures included senior executives: Daniel Bachhuber, head of WordPress.org; Naoko Takano, programs and contributor experience lead; Daniel Walmsley, AI principal architect; and Josepha Haden Chomphosy, WordPress.org’s executive director.

The Automattic-WP Engine conflict began nearly a month ago when Mullenweg labeled WP Engine “a cancer to WordPress” for insufficient contributions to the open-source project. This sparked a heated dispute, culminating in cease-and-desist letters, trademark infringement allegations, a WP Engine lawsuit, and WordPress.org blocking WP Engine’s access and seizing control of its maintained plugin.

Automattic has mobilized to safeguard its trademarks by retaining lawyers described internally as “nice and not nice,” signaling a strategic defense. This proactive measure was foreshadowed in an internal communication published earlier this year by the company’s then-chief legal officer.


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Hadia Seema
Hadia Seema

Journalist at LAFFAZ, Hadia Seema possesses a creative flair as a writer and poet. With a passion for research, storytelling, and the dynamic world of startups, she brings a unique perspective to business journalism. Hadia’s work delves into themes of beauty, identity, and self-expression, blending her love for language and the arts with her expertise in the startup ecosystem. A stalwart in the field, she excels at transforming complex business news into skimmable engaging content that resonates with readers of all levels.

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