The feud between WP Engine and Matt Mullenweg, WordPress co-founder and Automattic CEO, recently escalated when the web hosting service sued Mullenweg, accusing him of abuse of power, extortion, and greed. In response, Mullenweg offered a “buy-out package” to employees, resulting in 159 people, or 8.4 percent of the company, taking the offer. Most of the departed employees came from the Ecosystem / WordPress business, with others from divisions working on apps like Tumblr and Cloudup. Mullenweg criticized WP Engine, calling them a “cancer to WordPress” and accusing them of trademark violations. WP Engine, in turn, accused Mullenweg of demanding royalties and various legal violations. Automattic’s lawyer called the lawsuit “meritless” and looks forward to the federal court’s consideration. The dispute also led to the WordPress Foundation changing its trademark policy to address the use of the “WP” abbreviation. Ultimately, the ongoing conflict between WP Engine and Matt Mullenweg continues to create tensions in the industry.
