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Business News/ News / Atlassian announces layoffs in cost-cutting measure, cuts 500 jobs

In a move that mirrors other software companies, Atlassian Corp. has announced that it will be laying off approximately 5% of its workforce - a total of 500 full-time employees. In the corporate filing, the company said that it will incur about $70 million to $75 million in restructuring costs, primarily through the end of June.

Co-Chief Executive Officers Mike Cannon-Brookes and Scott Farquhar wrote in a memo to employees said, “We need to go further in rebalancing the skills we require to run faster at our company priorities."

The executives have said that the reductions in staff are not a reflection of Atlassian's financial performance. Instead, they said, the company is reallocating resources to concentrate on its growth divisions, including cloud computing.

“This is different to a financially-driven reduction," Mike Cannon-Brookes and Scott Farquhar said in the memo.

Atlassian, which has headquarters in Sydney and San Francisco, is known for its collaboration programs Trello and Jira. The company’s headcount more than tripled in the last four years to 10,787 employees at the end of 2022, according to filings.

The company had been one of the few software providers of its size not to have announced widespread job cuts. Enterprise peers Twilio Inc., Autodesk Inc., Okta Inc. and Workday Inc. are among those that have reduced their workforces in recent weeks.

(With agency inputs)

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Updated: 07 Mar 2023, 05:31 PM IST
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