business software maker Atlassian announced on Monday that it would lay off about 5% of its workforce, or 500 employees. Following the announcement, Atlassian’s stock rose 1% in long-term trading.
The tech industry has contracted slightly over the past year after Covid changed the behavior of individuals and businesses despite continued low unemployment in developed countriesAtlassian Competitors alphabet, Asana, GitLab, IBM, microsoft and PagerDuty The central bank has also tried to keep inflation in check by raising interest rates, announcing job cuts in recent months.
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Atlassian co-founders and co-CEOs Scott Farquhar and Mike Cannon-Brookes said the move focused less on financial needs and on key priorities such as IT service management, allowing customers to move their workloads on-premises. from the data center of the city.Cuts aren’t evenly distributed across the company, they write blog post.
The company generated approximately $873 million in revenue 4th quarterended the period with a net loss of $205 million, up about 27% year-over-year. Australia’s unemployment rate was 3.7% in January. government statistics.
“Many teams across Atlassian have been impacted, but the teams most impacted include Talent Acquisition, Program Management, and Research & Insights,” write Farquhar and Cannon-Brookes. “I want to make it clear that these decisions do not reflect the work of my teammates. Each and every one of us contributes, changes the company for the better, and will have a lasting impact on our colleagues and team. This is about rebalancing roles. First and foremost, we need the whole Atlassian.”
Atlassian cut employees are given 15 weeks of severance pay, plus one week for each year of employment, to keep their laptops. A spokesperson told CNBC that Friday will be the last day.
Atlassian is based in Sydney. Australia’s unemployment rate in January stood at 3.7% on a seasonally adjusted basis, he said. government statistics.
Cost savings will result in costs of $70 million to $75 million, according to the filing.
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