Automattic CEO Matt Mullenweg announced on a company-wide Slack channel that he has been placed on a paid leave of absence, effective immediately.
According to Mullenweg’s message, CFO Mark Davies “conspired” with board members Ann Dunwoody, Toni Schneider, and Sue Decker to put him on leave “behind my back,” and he voted against the decision. Davies was voted to become interim CEO during Mullenweg’s absence.
Mullenweg stated he received the resolution 50 minutes before the board meeting and “requested repeatedly for time to have it reviewed by independent legal counsel, even a few hours, which was denied.”
In response, board member Toni Schneider confirmed the decision, writing that the board asked Mullenweg “to step away from his CEO role and take a leave of absence” and that Davies would “assume the interim CEO role while Matt is away.” Schneider expressed confidence in Davies, stating the board has “worked closely with Mark over the years.”
Davies wrote in the same Slack channel that Mullenweg would remain a board member and “will have a voice in setting direction and making decisions.” He also stated that “nothing will change” as a result of Mullenweg’s leave and promised to move forward “with transparency, communication, and teamwork.”
Mullenweg founded Automattic, which owns WordPress, Tumblr, Pocket Casts, and numerous other internet platforms and software products. According to the source, he has faced several controversies related to his management of the company in recent years.
In 2024, Mullenweg offered Automattic employees who disagreed with his positions a buyout of six months of pay or $30,000, whichever was higher, requiring them to surrender work access that same evening with no rehire eligibility. According to the source, 159 employees accepted the offer. He subsequently made another buyout offer and threatened employees who spoke to the press with termination, stating they should “exit gracefully, or be fired tomorrow with no severance.”
Mullenweg has also engaged in a lengthy legal dispute with WP Engine, publicly sparring with opponents on social media and his personal blog. Most recently, Automattic attempted to claim ownership of the word “automatic,” according to the source.
Key facts
- Automattic CEO Matt Mullenweg was put on paid leave by the company’s board
- CFO Mark Davies was voted to serve as interim CEO
- Mullenweg said he was denied time to have the resolution reviewed by independent legal counsel
- The decision was made by board members Ann Dunwoody, Toni Schneider, and Sue Decker
- Mullenweg will remain a board member with a voice in company decisions
- 159 Automattic employees accepted a buyout offer in 2024 after disagreeing with Mullenweg’s positions