Automattic, the parent company of WordPress.com, has laid off about 16% of its workforce, reducing its employee count from 1,777 to 1,495.

This decision, impacting around 280 staff members, was communicated by CEO Matt Mullenweg, who emphasized the layoffs were necessary to ensure the company’s long-term future.

While revenue is growing, Mullenweg noted that the company operates in a competitive market with rapidly evolving technology.

The layoffs come during a challenging period for Automattic, which is engaged in a legal dispute with third-party hosting company WP Engine.

The lawsuit, filed in 2024, centers on Automattic blocking WP Engine from WordPress.org’s server and its acquisition of the Advanced Custom Fields (ACF) plugin.

Mullenweg has warned that this legal situation could have significant financial consequences for the company.