Atlassian workforce reduction unsurprising, says Piper Sandler

Piper Sandler analyst Rob Owens keeps a Neutral rating on Atlassian with a $160 price target after the company disclosed it will be laying off around 500 employees, or 5% of its workforce, in an effort to rebalance priorities given the current macroeconomic environment. The analyst is "unsurprised of this decision," given that the macro environment has remained challenging throughout the beginning of 2023 and the company’s cadence of employee growth outpacing revenue growth for the past three fiscal years.