👉 Background: Atlassian is the Australian founded, NASDAQ listed tech company that develops collaboration software for software teams
Think: Jira, Confluence, Trello and Bitbucket.
👉 What happened: Over the past four years, the number of Atlassian team members had tripled to more than 10,500 employees. But now, Atlassian has announced that more than 500 employees will be laid off.
👉 What else: A real 180-degree-turn from its hiring drive in October last year where the company drove around in the “Atlassivan” to hire over 1000 new roles.
💡 In 2020, 2021 and much of 2022, investors were rewarding companies for growing fast, but in 2023, the opposite is the case.
💡In fact, in the tech industry specifically, investors are now rewarding cost cutting programs that have seen thousands of tech workers laid off. We’ve seen layoffs at Meta, Google, Microsoft, Salesforce, Disney, Twitter and many other tech companies.
💡In early February, Atlassian warned that their revenue from the March quarter would be lower than expected. So as a result, they’ve needed to demonstrate that they’re taking steps to become profitable... for the very first time.
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