What Happened to Automattic?

Automattic Inc., founded in 2005 by WordPress co-founder Matt Mullenweg, has grown into a global distributed company central to the open web, powering millions of websites through WordPress.com and its contributions to the open-source WordPress project. Its portfolio includes widely recognized brands such as WooCommerce, Jetpack, Tumblr, Pocket Casts, and Simplenote. The company's mission revolves around democratizing publishing and making the web a better place, with a strong emphasis on sustained investment in WordPress's core development, infrastructure, security, and performance.

Over the years, Automattic has strategically expanded its offerings through numerous acquisitions. Notable recent additions include Texts in 2023, expanding its footprint in messaging applications, and Beeper in April 2024 for approximately $125 million, further solidifying its messaging pillar. In June 2025, Automattic acquired Clay, a relationship management tool leveraging AI-driven insights, which was integrated into its 'Other Bets' division alongside Beeper and Gravatar, aiming to enhance its messaging ecosystem. This period also saw the launch of the Jetpack AI Assistant in 2023, signaling a significant push into artificial intelligence across its product lines.

However, Automattic has also faced internal and external challenges. In April 2025, the company underwent a significant restructuring, resulting in the layoff of 16% of its workforce, approximately 281 positions. This move was attributed to competitive pressures and rapid technological changes, indicating a strategic adjustment to focus on durable growth areas like the WooCommerce ecosystem and AI. The company has also been involved in a divisive legal battle with WP Engine, with public disputes and accusations regarding evidence preservation. Furthermore, in February 2024, reports emerged that Automattic would begin selling user data from Tumblr and WordPress.com to AI companies like Midjourney and OpenAI.

The most recent and dramatic events unfolded in September 2026. On September 9, Automattic's board of directors placed Matt Mullenweg on a paid leave of absence, appointing CFO Mark Davies as interim CEO. Mullenweg publicly accused board members of conspiring against him, claiming he was given only 50 minutes' notice of the vote and denied legal counsel. However, just days later, by September 14, Mullenweg was reinstated as Chairman and CEO with the full support of the board, though no public explanation was provided for either the initial decision or the swift reversal. This rapid change in leadership highlights ongoing internal dynamics within the company. As of late 2026, Automattic continues to focus on integrating AI, expanding its messaging and e-commerce platforms, and maintaining its foundational role in the WordPress ecosystem, with Mullenweg back at the helm.