Atlassian has announced that it will be laying off 5 per cent of its workforce, approximately 500 employees from different departments. The decision comes after a restructuring that took place a month prior at the software productions company to align with the challenges of an evolving and challenging macroeconomic climate.
In a statement released on March 6, 2023, Mike Cannon-Brookes and Scott Farquhar, co-founders and co-CEOs, Atlassian, clarified to the employees about their decision and how it should not be perceived as an indication of the company’s financial performance.
While the tech firm’s overall revenue has increased in recent years, it has still been reporting net losses in its quarterly earnings statements. The co-founders explain that the layoffs are part of a ‘rebalancing’ effort to prioritise the company’s growth areas. They stress that this is not a financially-driven decision aimed at making across-the-board cuts, but rather a strategic move to reduce investment in certain areas and reallocate those resources to others.
The statement also specified that the job cuts will be concentrated in certain areas such as talent acquisition, programme management, and research and insights. Additionally, the objective, as stated in the company’s SEC filing, is to reposition the company for its greatest opportunities for growth. According to the co-founders, these opportunities include cloud migrations, IT service management (ITSM), and serving enterprise customers in the cloud.
The layoffs are expected to cost the creator of popular software tools like Jira, Confluence, and Trello approximately $70 to $75 million, according to Atlassian’s filing.
Although the layoffs are undoubtedly difficult, Atlassian is providing 15 weeks of severance pay to the affected employees, as the statement mentions. Additionally, the employees will receive one extra week of severance pay for each year of service, and any remaining paid time off will be paid out to them. The company is also providing accelerated vesting and employer-sponsored healthcare for six months, as well as visa assistance.
Additionally, in a growing trend, employees will be allowed to keep their work laptops. However, employees with access to sensitive data will be locked out of their laptops, though they will still be able to use tools like Confluence, Slack, Zoom, and Gmail on other devices they had previously enrolled in. Some laid-off employees will also have access to the company’s communication tools for the remainder of one week.
Value our content... contribute towards our growth. Even a small contribution a month would be of great help for us.
Since eight years, we have been serving the industry through daily news and stories. Our content is free for all and we plan to keep it that way.
Support HRKatha. Pay Here (All it takes is a minute)
