Australia-based collaboration software company Atlassian, whose products target software developers and project managers, has announced plans to lay off 500 employees, about 5% of its workforce, to focus on enterprise cloud migration issues and IT Service Management (ITSM).
a blog post published Monday and written by the company’s founders and co-CEOs, Scott Farquhar and Mike Cannon-Brookes, said the company had made the “tough decision to rebalance our team to better serve Atlassian for the long term.” position.”
However, the two executives added that the move was “other than a financially driven reduction” as the decision was not a reflection of Atlassian’s own financial performance, but that the company was instead looking to reinvest in functions that align its priorities. support the company better. “As a company, we have tremendous growth opportunities ahead of us, particularly in cloud migrations, ITSM and serving our enterprise customers in the cloud,” said the co-CEOs.
The move follows similar announcements that have been plaguing the global tech industry since late 2022, with companies including Meta, Twitter, Salesforce and Alphabet laying off tens of thousands of workers to address overhiring issues amid the pandemic. and ongoing macroeconomic factors.
Farquhar and Cannon-Brookes said the teams hardest hit by the cuts are talent acquisition, program management and research. Affected employees will receive 15 weeks of salary, plus one week for each year of service, job search support and will be allowed to keep their laptops. They can also use internal tools to stay in touch with colleagues until Friday 10 March.
“We want to be clear that these decisions do not reflect the work of our teammates,” said the co-founders. “Everyone has made contributions that have changed our business for the better and will have a lasting impact on their colleagues and teams. This is primarily about rebalancing the roles we need within Atlassian.”
Early February 2023, Atlassian posted revenue of $873 million for the second quarter of fiscal 2023, up 27% year-over-year. Despite an increase in subscription revenue growth, the company still ended the quarter with a net loss of $205 million, primarily due to increasing R&D, marketing and sales, and administrative expenses.
In a filing with the Securities and Exchange Commission (SEC) made on March 6, 2023, Atlassian estimated that the company will incur approximately $70 million to $75 million in costs related to the layoffs during the third quarter of fiscal year 2023.
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