Automattic board places founder Matt Mullenweg on leave, names CFO interim CEO
Money MovesThe man who created WordPress no longer runs the company commercializing it, while keeping control of the open-source project
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Overview
Updated 1 hour agoAutomattic'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.
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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People Involved
Organizations Involved
A commercial parent of WordPress.com, Tumblr, WooCommerce, and Pocket Casts.
The open-source content management system that powers more than 40% of websites.
A web hosting provider and Automattic's chief legal adversary over WordPress trademark use.
Timeline
September 2024 September 2026
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Board places Mullenweg on paid leave
Latest GovernanceAutomattic's board votes 4-1 to place Mullenweg on paid leave against his will; Mark Davies becomes interim CEO.
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Burning Man festival ends
ContextA person close to the situation speculated timing may relate to Mullenweg's annual Burning Man trip ending.
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WP Engine seeks sanctions over missing messages
LegalWP Engine alleges Mullenweg's communications from the case period are missing due to failed backups and lost devices; hearing set for September 30.
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Automattic cuts 16% of staff
CompanyThe company announces layoffs of about a sixth of its workforce to improve productivity and profitability.
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Judge orders WP Engine access restored
LegalFederal judge orders Automattic and Mullenweg to restore WP Engine's access to WordPress.org resources and a key plugin.
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WP Engine sues Automattic
LegalWP Engine accuses Automattic and Mullenweg of defamation and abuse of power.
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159 employees take Mullenweg's severance offer
CompanyMullenweg invites staff who disagree with his direction to quit with severance; 159 accept.
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Mullenweg demands royalty from WP Engine
DisputeMullenweg publicly demands WP Engine pay 8% of monthly gross revenue for using the WordPress brand.
Historical Context
3 moments from history that rhyme with this story — and how they unfolded.
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.
Apple lost its visionary founder and floundered for a decade; Jobs built NeXT and later bought Pixar.
Apple acquired NeXT in 1997 and Jobs returned, eventually saving the company with the iMac and iPhone.
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.
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.
Twitter grew under new leadership but Dorsey remained a visible figure and board chairman.
Dorsey returned as CEO in 2015 and led Twitter through its IPO before stepping down in 2021.
A forced founder exit is not always permanent; board dynamics can reverse, especially when the founder retains board and project authority.
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.
Uber hired Dara Khosrowshahi as CEO; Kalanick left the board in 2019.
Kalanick never returned to an operating role at Uber, though he fought for influence through his board seat for two years.
The closest parallel: a founder removed during a legal and reputational crisis, whose board seat gave him lingering influence but no operational control.
