Massively is reporting (from Joystiq) rumours that 60-120 jobs are being axed at Mythic HQ, including senior designers.
Bearing this up, MJ has posted a note on the Herald:
Obviously, demand for a large QA and play-testing staff also falls after launch. As a result, we saw a staff reduction which is in line with the company-wide initiative. In no way does this conflict with our commitment to customer service. Staffing numbers will always map to consumer needs – it goes up when we launch new products and expand popular ones, and comes back down as players become familiar with the game.
Sympathies to anyone who is personally affected, we hope you all land on your feet.