Automattic, the company behind WordPress.com and Tumblr, is laying off 16% of its workforce, impacting over 270 employees across 90 countries. CEO Matt Mullenweg cited market competition and the need for efficiency as driving factors. The layoffs come after legal tensions with WP Engine and the cancellation of the company’s 2025 retreat. Affected employees, including longtime staff, will receive severance and job placement support.