Observed Signal · Sep 10, 2026 · Leadership Change · Source: t3n · Impact: 2/5 · Sentiment: Neutral
WordPress parent Automattic forces CEO Matt Mullenweg on leave
WordPress parent company Automattic's board has placed CEO Matt Mullenweg on a forced leave of absence, with CFO Mark Davies appointed as interim CEO. Mullenweg expressed surprise in internal Slack messages, alleging a 'conspiracy' by board members. The decision follows years of internal tensions and a legal dispute with WP Engine over licensing fees. Automattic confirmed the move to TechCrunch. The company, which also owns Tumblr and WooCommerce, saw mixed reactions from employees, with some feeling relief and others fearing instability.
Relevant to the tech industry as it involves a major open-source platform and its parent company, but not directly related to AdTech, MarTech, or advertising.
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Key Takeaways & Evidence Grounding
- Automattic's board forced CEO Matt Mullenweg on a leave of absence.
- CFO Mark Davies will serve as interim CEO.
- Mullenweg claimed in Slack that board members conspired to vote for his leave.
- The decision follows a legal dispute with WP Engine and internal tensions, including layoffs in 2025.
- WordPress project leadership remains with Matt Mullenweg and Mary Hubbard.
- Automated summary: Automattic's board has placed CEO Matt Mullenweg on a forced leave of absence, with CFO Mark Davies as interim CEO, following years of internal conflict and a legal dispute with WP Engine.
Connected Companies & Entities
5 Entities mapped“The board of Automattic has placed CEO Matt Mullenweg on a forced leave of absence.”
“WordPress is the open-source project and company for which Automattic is the parent.”
“Automattic was in a legal dispute with competitor WP Engine over licensing fees.”
“Automattic is also responsible for brands like Tumblr and WooCommerce.”
“Automattic is also responsible for brands like Tumblr and WooCommerce.”
Related Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
Mullenweg Claims He's Back in Control at Automattic
Automattic CEO Matt Mullenweg has returned as CEO and chairman after a failed board attempt to place him on paid leave, which lasted 33 hours. Following his return, the entire board was removed: Toni Schneider resigned, while Sue Decker and Ann Dunwoody were ousted, and Chief Legal Officer Andy Missan departed. Mullenweg, who controls 84% of voting shares, has since rebuilt the board with new members including author Hugh Howey, Amy Chan, and IRL co-founders Henry Khachatryan and Krutal Desai. Advisers include former Woop CTO Jaime Waydo and KISSmetrics co-founder Hiten Shah. The leadership shakeup occurs amid an ongoing trademark lawsuit with WP Engine and internal tensions, including layoffs and Mullenweg's reference to a fifth 'coup' attempt involving Silver Lake.
Automattic begins layoffs following board upheaval
Automattic, the parent company of WordPress.com, WooCommerce, and Tumblr, has begun laying off employees across multiple teams, including communications, social, WordPress.com, and its VIP enterprise business. This follows a failed attempt by the board to oust CEO Matt Mullenweg in September, which led to a complete board turnover and the departures of its CFO, interim CFO, and Chief Legal Officer. Insiders suggest more cuts could follow as the company aims to improve its Q4 revenue figures ahead of a debt renegotiation in June. The company's About page lists 1,397 staff, but layoffs are reportedly being staggered over several months. Automattic spokesperson Chenda Ngak stated that organizational changes are being staggered to be more generous with severance.
Automattic Execs Signed Reciprocal Severance Deals During CEO Brief Ouster
During the 33-hour window in September 2026 when Automattic CEO Matt Mullenweg was placed on paid leave, interim CEO Mark Davies and Chief Legal Officer Andy Missan signed reciprocal severance agreements. These golden parachutes provide each with 12 months' salary, accelerated equity vesting, and extended health coverage. The total cost to Automattic is $8.15 million, which the company now owes both executives after Mullenweg fired them upon his return. The agreements define 'cause' narrowly and include clauses tailored to Davies's interim role. Automattic has replaced its legal counsel and is deciding whether to pay or contest the packages. The incident is linked to a broader governance struggle and ongoing litigation with WP Engine.
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