Atlassian slashes nearly 5% of the headcount as the software designer focuses on high-priority areas

March 8, 2023: On Monday, Business-software architect Atlassian said it would lay off 500 employees, or nearly 5% of its workforce. Atlassian shares were up 1% in going trading following the announcement.

The technology industry contracting in the previous year following Covid caused individuals and companies to change their behaviours, even as unemployment continues to be low in developed countries. Atlassian has competitors such as Alphabet, Asana, GitLab, IBM, Microsoft, and PagerDuty, and has declared job cuts recently, with central bankers who seek to tamp down rising costs by lifting interest rates.

Scott Farquhar and Mike Cannon-Brookes, the co-founders and co-CEOs, stated that the move is less regarding financial needs and more about noticing key priorities like IT service management and helping customers move workloads from on-premises data centres to the cloud. They wrote in a blog post that cuts are unevenly distributed all over the company.

The company brought nearly $873 million in earnings in the fourth quarter, up almost 27% year over year, although it completed the period with a $205 million net loss. According to government statistics, Australia’s unemployment rate in January was 3.7%.

“While many teams across Atlassian are impacted, a few of our most impacted teams retain Talent Acquisition, Program handling, and Research & Insights,” Farquhar and Cannon-Brookes noted. “We want to be clear these decisions do not reflect our teammates’ work. Everyone has made contributions that have improved our company and will leave a lasting impact on their peers and teams. This is regarding rebalancing the roles we need all over Atlassian first and foremost.”

Employees whom Atlassian is cutting will get 15 weeks of severance, plus one week for every year of employment, and they can handle their laptops. Friday will be there in the previous day, and a spokesperson stated.

Atlassian is based in Sydney. According to government statistics, Australia’s unemployment price in January was 3.7% on an adjusted basis regarding the season.

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Atlassian slashes nearly 5% of the headcount as the software designer focuses on high-priority areas
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