Automattic Boardroom Bombshell: CEO Matt Mullenweg Forced Into Leave of Absence

In a stunning development shaking the tech world, Matt Mullenweg, the visionary founder and CEO of Automattic – the company behind WordPress.com, Tumblr, and WooCommerce – has been forced onto a leave of absence by his own board of directors. The unceremonious ousting, which Mullenweg claims was against his will, casts a shadow of uncertainty over one of the internet’s most foundational content platforms and its commercial steward.

The news, first revealed through internal communications, follows a period of escalating internal tensions, contentious legal battles, and significant strategic shifts under Mullenweg’s leadership. Mark Davies, Automattic’s Chief Financial Officer, has been appointed interim CEO.

Key Takeaways

• Founder Ousted:Matt Mullenweg, Automattic’s founder and CEO, has been put on a paid leave of absence by the company’s board of directors, a decision he opposed.
• Leadership Transition:Mark Davies, Automattic’s CFO, has been appointed interim CEO, with the board expressing full confidence in his ability to lead.
• Turbulent Backdrop:This move follows years of internal strife, high-profile lawsuits, significant layoffs, and questions surrounding Mullenweg’s leadership style and strategic direction.

The Unceremonious Departure

The news broke via a Slack message from Mullenweg himself, visible to all Automattic employees. In the message, he alleged a “conspiracy” among board members Ann Dunwoody, Toni Schneider, and Sue Decker, orchestrated by CFO Mark Davies, to vote him out. Mullenweg asserted he voted against the decision and was denied repeated requests for independent legal counsel to review the resolution, which he reportedly received less than an hour before the crucial meeting.

And the biggest news: I won’t be able to make the [meeting] tomorrow. @Mark Davies has conspired with @Ann Dunwoody, @Toni, and @Sue Decker behind my back and they voted to put me on a paid leave of absence. I voted against that. Wishing Mark and all of you the very best.

To clarify @Mark Davies was voted as interim CEO. I received the resolution 50 minutes before the meeting start, and requested repeatedly for time to have it reviewed by independent legal counsel, even a few hours, which was denied.

This abrupt action signals a profound breakdown in trust between the founder and his board. Board members like Toni Schneider, a former CEO of Automattic from 2006 to 2014, and venture capitalist Ann Dunwoody, bring significant experience and institutional memory, suggesting a deliberate and likely difficult decision was made to remove the company’s public face and strategic architect.

Automattic Confirms Leadership Change

In an emailed statement to TechCrunch, Automattic officially confirmed the development, reinforcing the board’s position. “Matt Mullenweg is currently on leave from Automattic,” the statement read. “Mark Davies, Automattic’s CFO, will lead the company as interim CEO. The Board has full confidence in Mark’s leadership and in the team’s ability to execute against the company’s priorities.”

The confirmation from the company, while terse, underscores the gravity of the situation and the immediate need for stability at the helm. Davies, as CFO, would possess intimate knowledge of Automattic’s financial health and operational complexities, making him a logical choice for an interim leadership role during this tumultuous period.

The WordPress.org Distinction

Crucially, the change in leadership at Automattic, the commercial entity, does not directly impact the open-source WordPress.org project. Mary Hubbard, the executive director of the WordPress.org project, swiftly moved to reassure the community via a Slack message. “Matt remains the leader of the WordPress project and I remain Executive Director of WordPress. Our teams, priorities, and work continue as planned,” she wrote.

This distinction is vital. WordPress.org is the free, open-source content management system co-created by Mullenweg, maintained by a global community of developers and volunteers. Automattic, founded by Mullenweg in 2003, is a for-profit company that offers commercial services like WordPress.com hosting, and owns other popular platforms such as Tumblr, WooCommerce, and Pocket Casts. While Mullenweg’s influence has historically spanned both entities, his removal from Automattic’s operational leadership primarily affects the commercial ventures, though its psychological impact on the broader WordPress ecosystem cannot be underestimated.

A History of Turbulence and Controversy

Mullenweg’s forced departure comes on the heels of several years marked by significant controversy, internal dissent, and high-stakes legal battles, painting a picture of a leader increasingly at odds with various stakeholders.

Legal Battles and Royalty Demands

One of the most prominent flashpoints has been Automattic’s protracted legal battle with WP Engine, a WordPress web hosting competitor. This dispute began with Mullenweg’s aggressive demands for royalty fees. He alleged that WP Engine was profiting substantially from the open-source WordPress project without adequately contributing back to the community, demanding an 8% royalty fee on its monthly gross revenue for using the WordPress brand.

WP Engine responded in October 2024 by filing a lawsuit, accusing Automattic and Mullenweg of defamation and abuse of power. Automattic subsequently filed counterclaims last year. The situation escalated further in February when WP Engine claimed that Automattic intended to target at least ten more competitors with similar royalty demands, raising concerns across the WordPress commercial ecosystem about potential monopolistic practices and the weaponization of open-source principles for commercial gain.

Internal Dissent and Mass Departures

Mullenweg’s leadership style also faced significant internal challenges. Tensions reportedly reached a peak in 2024 when Mullenweg controversially offered employees severance packages to quit if they disagreed with his vision. This unusual ultimatum led to the departure of 159 employees, a significant portion of the company’s workforce, indicating deep-seated disagreements and a divisive internal culture.

Threats to the Open-Source Community

Even within the open-source WordPress.org community, Mullenweg faced scrutiny. Last year, he threatened to deactivate the accounts of several community members who planned to spearhead a “forked” version of the open-source WordPress project. A fork, in open-source terms, is when developers take the existing code and develop it independently, creating a new, separate project. Such a threat from the project’s co-founder was seen by many as an attempt to stifle innovation or dissent within a community built on collaboration and open participation.

Layoffs and Instability

Further contributing to a climate of instability, Automattic laid off 16% of its staff in April 2025. These cuts reportedly included some long-tenured employees, leading to further questions about the company’s financial health and strategic direction under Mullenweg’s guidance. The cumulative effect of these events likely played a significant role in the board’s decision to intervene.

Employee Reactions and Speculation

The internal reception to Mullenweg’s ousting has been mixed. Sources indicate that some current employees expressed feelings of being “ecstatic” or “relieved” at the news, suggesting long-standing frustrations with the previous leadership. However, others conveyed mixed emotions, citing concerns that the sudden change could lead to further instability within the company.

Speculation regarding the precise timing of the board’s action has also emerged. One unconfirmed theory suggests a connection to Mullenweg’s annual trip to the Burning Man festival, from which he is known to return “with ideas.” This year’s festival concluded on September 7, making the timing potentially significant, though the actual reasons are almost certainly rooted in deeper, more systemic issues.

Mullenweg did not immediately respond to requests for comment.

Bottom Line

The forced departure of Matt Mullenweg marks a pivotal moment for Automattic and the broader WordPress ecosystem. It signifies a decisive move by the board to address persistent turbulence, leadership challenges, and strategic directions that may have been deemed detrimental to the company’s long-term health. While it brings immediate uncertainty and potential instability, it also opens the door for new leadership under Mark Davies to reset Automattic’s course, potentially fostering a more collaborative internal environment and a more harmonized relationship with the wider WordPress community. The ramifications of this change will undoubtedly shape the future of WordPress.com, Tumblr, and Automattic’s other ventures, and will be closely watched by millions who rely on their platforms.