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The company recently experienced growth driven by subscription revenue.
March 8, 2023
The teams impacted include talent acquisition, program management, and research and insights, among others.
Atlassian’s Michael Cannon-Brookes
Atlassian’s Scott Farquhar
“We want to be clear these decisions are not a reflection of our teammates’ work. 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,” CEOs Michael Cannon-Brookes and Scott Farquhar said. “This is about rebalancing the roles we need across Atlassian first and foremost.”
A month ago, the company reorganized to “better reflect operating in a changing and difficult macroeconomic environment,” the men said.
Keep up with our telecom-IT layoff tracker to see which companies are cutting jobs and the ensuing channel impact.
Atlassian closed out 2022 with quarterly revenue of $873 million, up 27% year over year. Subscription revenues drove much of this growth. However, the company had a net loss of $205 million.
“We are proud of everything we have accomplished in yet another unpredictable year,” Farquhar said in an investor relations report. “2023 will be all about helping our customers navigate these challenging times, absorbing the macro-driven impacts on our business, and setting Atlassian up for long-term success.”
Employees laid off will get 15 weeks of severance, plus one week for each year of employment. CNBC reported that the costs cuts will result in $70 million to $75 million in charges.
Several of Atlassian’s competitors – including Alphabet, Microsoft and GitLab – have also cut jobs in recent months. More than 100,000 tech workers have been laid off to date in 2023. Reasons for these layoffs vary. Some tech companies went through a hiring spree during the pandemic and have right-sized since that period. HR departments were also hit hard during this headcount reduction as some tasks by human resources personnel are now automated.
Claudia Adrien is a reporter for Channel Futures where she covers breaking news. Prior to Informa, she wrote about biosecurity and infectious disease for a national publication. She holds a degree in journalism from the University of Florida and resides in Tampa.
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