Australia-based partnership software application company Atlassian, whose products target software designers and project supervisors, has actually revealed strategies to lay off 500 employees, around 5% of its workforce, to focus on enterprise cloud migration concerns and IT service management (ITSM).
A blog post published Monday and authored by the business’s creators and co-CEOs, Scott Farquhar and Mike Cannon-Brookes, said that the business had made the “tough decision to rebalance our group to much better position Atlassian for the long term.”
However, the 2 executives added the move was “different to a financially-driven decrease” as the decision was not a reflection of Atlassian’s own monetary performance, rather that the business was instead aiming to reinvest in roles that much better support the business’s top priorities. “As a company, we have massive development opportunities in front of us, especially throughout cloud migrations, ITSM, and serving our business clients in the cloud,” the co-CEOs said.The move follows comparable announcements that have been pestering the global technology market since the end of 2022 and has actually seen business such as Meta, Twitter, Salesforce and Alphabet lay off tens of thousands of employees in order to address concerns of over-hiring throughout the pandemic and ongoing macroeconomic factors.Farquhar and Cannon-Brookes said the groups set to be hit hardest by the cuts are skill acquisition, program management and research study. Affected employees will receive 15 weeks wage, plus one week for each year of employment, job-seeking assistance, and will be enabled to keep their laptops. They will likewise be able to utilize internal tools to remain in contact with colleagues till Friday March 10.”We wish to be clear these choices are not a reflection of our teammates’work, “the co-founders stated.”Each and every single individual has made contributions that have changed our company for the much better and will leave a long lasting
influence on their peers and teams. This is about rebalancing the roles we require throughout Atlassian first and foremost. “In early February 2023, Atlassian published profits of$873 million for its 2nd quarter 2023, up 27%year-over-year. However, regardless of a boost in subscription earnings growth, the company still closed the quarter with a$205 million net loss
, due primarily to increasing R&D, marketing and sales, and administrative costs.In a filing with the Securities and Exchange Commission(SEC)made on March 6, 2023, Atlassian estimated that throughout the third quarter of 2023, the business will sustain roughly$70 million to$75 million in charges in connection with the layoffs. Copyright © 2023 IDG Communications, Inc. Source