After reorganization that took place a month ago, Atlassian, owner of Jira, Confluence and Trello, among other tools is laying off 5% of its total workforce estimated at about 500 employees.

Atlassian will cut employees in areas like talent acquisition, program management and research and insights, hence, the company will incur about $70 to $75 million in charges in connection with these layoffs.

Affected employees would be offered 15 weeks of severance pay, plus one additional week per year of service. An offer of accelerated vesting as well as employer-sponsored healthcare for the next six months, with a visa support while their work laptops are left for them.

There are speculations that the decision may be connected with net losses in the company’s quarterly earnings releases despite the increase in its overall revenue in recent years.

Although, Mike Cannon-Brookes and Scott Farquhar co-founders and co-CEOs of Atlassian announced that the decision is to rebalance and help the company make their priority in the areas where it is growing and not connected with the company’s financial performance.

They said that the company aimed at reducing investment in specific areas, reinvest in others, reorganized within the company and better position it to execute against its largest growth opportunities particularly in cloud migrations, IT service management (ITSM).