Atlassian cuts 5% of its workforce

Atlassianthe corporate behind instruments like Jira, Confluence, and Trello at present announced it’s now shedding about 500 workers after a reorganization a month in the past. That is about 5% of the full workforce.

Atlassian co-founders and CEOs Mike Cannon-Brookes and Scott Farquhar word in at present’s announcement that the transfer shouldn’t be seen as a mirrored image of the corporate’s monetary efficiency (though it has nonetheless elevated its general income in recent times, IT continues to report net loss quarterly earnings releases). As a substitute, the co-founders are positioning the transfer as a “rebalancing” that may assist the corporate prioritize areas the place it is rising.

“We’ve got made robust calls to scale back our funding in sure areas to reinvest in different areas,” the co-founders write. “That is totally different from a financially targeted reduce the place you take into account ‘broad-based cuts’ – for instance, a ten% reduce evenly distributed to each physique throughout the firm. That is not what is going on on right here.”

Atlassian will lay off workers particularly in expertise acquisition, program administration and what it calls “analysis and insights.”

Within the concise language of the corporate SEC filing, the concept is to “higher place it to run towards the largest development alternatives.” In accordance with the co-founders, these alternatives embody cloud migrations, IT service administration (ITSM) and “serving our enterprise clients within the cloud.” It is no secret that Atlassian has been specializing in cloud companies in recent times, and it is apparently doubling down on merchandise like this and this one. Jira Service ManagementITSM answer Released in 2021.

In accordance with Atlassian’s submitting, the corporate will incur roughly $70 to $75 million in prices related to these layoffs.

Whereas layoffs are by no means simple, the corporate gives affected workers 15 weeks of severance pay, plus one week of further service per yr of service, and unused paid leaves are additionally paid. Along with visa assist, Atlassian will present accelerated authorization and employer-sponsored healthcare for the subsequent six months. Staff can even be capable to maintain their (more and more) enterprise laptops of their palms.

In a considerably uncommon transfer, laid-off workers will be capable to entry the corporate’s communications instruments for the rest of this week – however customers with entry to delicate information will be unable to entry their laptops (although they may nonetheless be capable to entry their laptops). to entry instruments like Confluence, Slack, Zoom, and Gmail on different pre-registered units).