Australian software maker Atlassian is preparing to cut 500 jobs or almost five percent of its workforce.
Scott Farquhar and Mike Cannon-Brookes, Atlassian’s co-founders and co-CEOs, said the move is to focus more on key priorities like IT service management than on financial needs.
The cuts will largely hit teams including Talent Acquisition, Program Management, and Research & Insights.
The bosses added the company intends to support customers moving workloads from on-premises data centers to the cloud.
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The company intends to support customers moving workloads from on-premises data centers to the cloud.
However, the CEOs clarified the layoffs are not evenly distributed across the organization.
Farquhar and Cannon-Brookes added: “We want to be clear these decisions are not a reflection of our teammates’ work.
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“Every single person has made contributions that have changed our company for the better and will leave a lasting impact on their peers and teams.
“This is about rebalancing the roles we need across Atlassian first and foremost.”
Affected employees will get 15 weeks of severance plus one week for each year of service and are permitted to keep their laptops.
A company spokesperson said Friday, March 10, would be their last working day.
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The tech sector has been shrinking in the past year after the pandemic drove both companies and consumers to change their behaviors.
Atlassian’s rivals, Alphabet, Asana, GitLab, IBM, Microsoft, and PagerDuty, have also announced job losses recently.
The global layoffs come as central bankers attempt to cool rising prices by boosting interest rates.
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