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Automattic board places founder Matt Mullenweg on leave, names CFO interim CEO

Automattic board places founder Matt Mullenweg on leave, names CFO interim CEO

Money Moves

The man who created WordPress no longer runs the company commercializing it, while keeping control of the open-source project

3 days ago: Board places Mullenweg on paid leave

Overview

Updated 2 days ago

Automattic's board voted September 9 to place founder and chief executive Matt Mullenweg on paid leave against his will. Chief financial officer Mark Davies steps in as interim CEO — a role Mullenweg voted against.

The ouster splits the company from the man who controls WordPress, the open-source system behind more than 40% of the web. It caps two unsettled years: a legal war with hosting rival WP Engine, a 159-employee exodus, and a 16% layoff. Investor BlackRock marked its Automattic shares down 83% in a June filing.

Why it matters

WordPress runs 40%+ of websites, and the founder who controls the open-source project no longer runs the company commercializing it.

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Key Indicators

159
Employees who took severance in October 2024
Mullenweg offered buyouts to staff who disagreed with his WP Engine direction; 159 accepted.
16%
Workforce reduction announced April 2025
Automattic said the cut was needed to improve productivity and profitability.
41.9%
Share of all websites powered by WordPress
The CMS still dominates the web, though its market share has declined in recent years.
4-1
Board vote to place Mullenweg on paid leave
Davies, Dunwoody, Schneider, and Decker voted yes; Mullenweg voted against.
84%
Mullenweg's voting power in Automattic
Mullenweg said at TechCrunch Disrupt in October 2024 that he held 84% of Automattic's voting power.
83%
BlackRock's markdown of Automattic shares
BlackRock's June 2026 filing carries its Automattic shares 83% below its 2021 entry price. An internal mark, not a market price.

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People Involved

Organizations Involved

Timeline

September 2024 September 2026

8 events Latest: 3 days ago
Tap a bar to jump to that date
  1. Board places Mullenweg on paid leave

    Latest Governance

    Automattic's board votes 4-1 to place Mullenweg on paid leave against his will; Mark Davies becomes interim CEO.

  2. Burning Man festival ends

    Context

    A person close to the situation speculated timing may relate to Mullenweg's annual Burning Man trip ending.

  3. Automattic cuts 16% of staff

    Company

    The company announces layoffs of about a sixth of its workforce to improve productivity and profitability.

  4. 159 employees take Mullenweg's severance offer

    Company

    Mullenweg invites staff who disagree with his direction to quit with severance; 159 accept.

  5. Mullenweg demands royalty from WP Engine

    Dispute

    Mullenweg publicly demands WP Engine pay 8% of monthly gross revenue for using the WordPress brand.

Scenarios

1

Automattic names permanent CEO as Mullenweg's leave becomes an exit

Likely Resolves by Jun 1, 2027

Discussed by: TechCrunch, 404 Media, The Verge — all report the board acted against Mullenweg's will, a sign the departure is meant to be permanent

The board replaces Mullenweg permanently, either promoting Mark Davies or hiring externally. Mullenweg keeps his board seat and WordPress leadership, deepening the split between company and open-source project. This mirrors most founder ousters, where a forced leave is a precursor to formal removal.

2

Mullenweg returns as CEO after his leave

Unlikely Resolves by Jun 1, 2027

Discussed by: A person close to the situation told TechCrunch the timing may be tied to Mullenweg's annual Burning Man trip, suggesting the ouster may not be final

The board reinstates Mullenweg, possibly after negotiations or after his legal leverage over the WordPress project forces the directors' hand. Mullenweg's continued control of WordPress.org gives him unusual bargaining power — the company's products depend on infrastructure he personally governs.

3

Mullenweg challenges the board in court

Possible Resolves by Jan 15, 2027

Discussed by: Byteiota and other coverage note the WP Engine sanctions motion and Mullenweg's combative legal posture; a founder fight with his own board is a common next step

Mullenweg files suit in Delaware over the board's removal, arguing breach of fiduciary duty or a flawed process. He told employees he asked for time to review the resolution with independent counsel and was denied — a claim that could anchor a legal challenge.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

September 1985

Steve Jobs ousted from Apple (1985)

After a power struggle with CEO John Sculley and the board, Apple stripped Jobs of his operational role. He resigned and founded NeXT, taking several Apple engineers with him.

Then

Apple lost its visionary founder and floundered for a decade; Jobs built NeXT and later bought Pixar.

Now

Apple acquired NeXT in 1997 and Jobs returned, eventually saving the company with the iMac and iPhone.

Why this matters now

A founder removed by his own board retains enormous institutional power; the question is whether that power pulls him back in or drives a permanent split.

October 2008

Jack Dorsey fired as Twitter CEO (2008)

Twitter's board pushed co-founder and CEO Jack Dorsey out, replacing him with Evan Williams. Dorsey stayed on the board as chairman.

Then

Twitter grew under new leadership but Dorsey remained a visible figure and board chairman.

Now

Dorsey returned as CEO in 2015 and led Twitter through its IPO before stepping down in 2021.

Why this matters now

A forced founder exit is not always permanent; board dynamics can reverse, especially when the founder retains board and project authority.

June 2017

Travis Kalanick forced out of Uber (2017)

Under pressure from investors over scandals involving harassment, a faulty self-driving program, and a hostile culture, Uber's board forced founder-CEO Travis Kalanick to resign.

Then

Uber hired Dara Khosrowshahi as CEO; Kalanick left the board in 2019.

Now

Kalanick never returned to an operating role at Uber, though he fought for influence through his board seat for two years.

Why this matters now

The closest parallel: a founder removed during a legal and reputational crisis, whose board seat gave him lingering influence but no operational control.

Sources

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