Atlassian cuts 5% of head count as software maker focuses on high-priority areas

business-software manufacturer Atlassian said on Monday that it would lay off 500 employees, or about 5% of its workforce. Atlassian shares were up 1% in extended trading following the announcement.

technology industry has been shrink a bit Unemployment remains low over the past year as people and companies change their behavior due to Covid in developed countries, Atlassian’s Competitors Alphabet, Posture, gitlab, IBM, Microsoft And pager duty Job cuts have also been announced in recent months, with central bankers seeking to cushion rising prices by raising interest rates.

Atlassian co-founders and co-CEOs Scott Farquhar and Mike Cannon-Brookes said the move is less about financial needs and more about focusing on key priorities such as IT service management and moving workloads from on-premises data centers to customers. is more about helping to move. Cloud. The cuts are not evenly distributed across the company, he wrote in a blog post,

The company generated revenue of approximately $873 million fourth quarter, nearly 27% year-over-year, although it ended the period with a $205 million net loss. Australia’s unemployment rate was 3.7% in January official statistics,

“While many teams at Atlassian are affected, some of our most impacted teams include Talent Acquisition, Program Management, and Research & Insights,” wrote Farquhar and Cannon-Brooks. “We want to be clear that these decisions are not a reflection of the work of our associates. Each one has made contributions that have changed our company for the better and will leave a lasting impact on their peers and teams. We need Atlassian first and foremost.”

The employees Atlassian is cutting will get 15 weeks of severance, plus one week for each year of employment, and can keep their laptops. Friday will be his last day, a spokesperson told CNBC.

Atlassian is based in Sydney. Australia’s unemployment rate was 3.7% in January on a seasonally adjusted basis official statistics,

The cost-cutting would result in a $70 million to $75 million charge, according to the filing.

Watch: Stop the Layoffs: When Do Investors Demand Growth?