Australian tech company Atlassian cuts 500 jobs, 5% of its global workforce including 120 local jobs in Australia to rebalance it’s priorities amid changing economic conditions. Teams that will be impacted directly include talent acquisition, program management, and research and insights.

In recent months, several major tech companies, including Google, Microsoft, Meta, Amazon, and Twitter, have laid off thousands of employees, with Atlassian now joining this growing list.

Atlassian co-CEOs Mike Cannon-Brookes and Scott Farquhar says the software company is not facing financial difficulties however, it needs to ‘rebalance’ its priorities amid changing economic conditions.

Cannon-Brookes and Farquhar said global severance package of at least 15 weeks plus a week for each year of service will be offered to the affected staff members.

The majority of the employees affected by the layoffs, which amounts to more than half, are situated in North America, while 120 workers in Australia have also been impacted. The remaining job cuts will occur in India, Europe, the Middle East, Africa, and the Philippines.

Although the company has labeled the job cuts as a “rebalancing” of its workforce, some teams have been affected more significantly by the redundancies than others.

Rather than making broad job cuts that affect every team, the changes have had the most significant impact on employees in the talent acquisition, project management, and research and insights teams.

Mike Cannon-Brookes and Scott Farquhar futher said that the company needed to reduce it’s investment in specific areas, in order to reinvest in others.

With headquarters located in both Sydney and San Francisco, Atlassian has a global workforce spanning 13 countries.