Atlassian cuts 5% of headcount as the software maker focuses on high-priority areas

Business-software shaper Atlassian said Monday that it volition laic disconnected 500 employees, oregon astir 5% of its workforce. Atlassian shares were up 1% successful extended trading pursuing the announcement.

The exertion manufacture has been contracting slightly successful the past twelvemonth aft Covid caused individuals and companies to changed their behaviors, adjacent arsenic unemployment continues to beryllium debased in developed countries. Atlassian's competitors Alphabet, Asana, GitLab, IBM, Microsoft and PagerDuty person besides announced occupation cuts successful caller months, with cardinal bankers seeking to tamp down rising prices by lifting involvement rates.

Scott Farquhar and Mike Cannon-Brookes, Atlassian's co-founders and co-CEOs, said the determination is little astir fiscal needs and much astir focusing connected cardinal priorities specified arsenic IT work absorption and helping customers determination workloads from on-premises information centers to the cloud. Cuts are not evenly administer crossed the company, they wrote successful a blog post.

The institution generated astir $873 cardinal successful gross successful the fourth quarter, up astir 27% twelvemonth implicit year, though it ended the play with a $205 cardinal nett loss. Australia's unemployment complaint successful January was 3.7%, according to government statistics.

"While galore teams crossed Atlassian are impacted, immoderate of our astir impacted teams see Talent Acquisition, Program Management, and Research & Insights," Farquhar and Cannon-Brookes wrote. "We privation to beryllium wide these decisions are not a reflection of our teammates' work. Every azygous idiosyncratic has made contributions that person changed our institution for the amended and volition permission a lasting interaction connected their peers and teams. This is astir rebalancing the roles we request crossed Atlassian archetypal and foremost."

Employees whom Atlassian is cutting volition person 15 weeks of severance, positive 1 week for each twelvemonth of employment, and they tin support their laptops. Friday volition beryllium their past day, a spokesperson told CNBC.

Atlassian is based successful Sydney. Australia's unemployment complaint successful January was 3.7% connected a seasonally adjusted basis, according to government statistics.

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