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Atlassian Corp. will cut about 5% of its workforce, or 500 full-time employees, becoming the latest software company to eliminate jobs.
“We need to go further in rebalancing the skills we require to run faster at our company priorities,” co-Chief Executive Officers Mike Cannon-Brookes and Scott Farquhar wrote in a memo to employees disclosed in a regulatory filing Monday. The software company said it will incur about $70 million to $75 million in restructuring costs, primarily through the end of June.
The executives said the reductions don’t reflect Atlassian’s financial performance, rather they are to focus resources in growth divisions such as cloud computing. “This is different to a financially-driven reduction,” Cannon-Brookes and Farquhar wrote in the memo.
Atlassian, which has headquarters in Sydney and San Francisco, is known for its collaboration programs Trello and Jira. The company’s headcount more than tripled in the last four years to 10,787 employees at the end of 2022, according to filings.
The company had been one of the few software providers of its size not to have announced widespread job cuts. Enterprise peers Twilio Inc., Autodesk Inc., Okta Inc. and Workday Inc. are among those that have reduced their workforces in recent weeks.
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