Meta Platforms Inc. is reportedly preparing another round of layoffs that could affect thousands of employees.

Bloomberg reported the development late Monday, the same day Atlassian Corp. announced plans to let go 5% of its workforce. The move affects about 500 employees. The reported restructuring being prepared by Meta and the job cuts at Atlassian are both part of a broader wave of tech layoffs that has affected enterprise and consumer technology companies alike.

The job cuts Meta is reportedly planning could begin as early as this week, according to Bloomberg. The exact number of employees who could be affected is not yet known. The restructuring is said to be separate from an ongoing effort by Meta to flatten its organizational structure. 

Last November, Meta let go 11,000 employees in a move that reduced its global headcount by about 13%. The company also announced that it would freeze hiring in most areas through the end of March. A few weeks after Meta announced the layoffs, reports began circulating that the company could be preparing a second round of job cuts.

Meta stated in a November regulatory filing that it was expecting its 2023 expenses to range between $94 billion and $100 billion. The company earlier projected expenses of $96 million to $101 billion. Besides reducing its headcount, the cost-cutting initiative will see Meta scale back some investments in data center infrastructure and consolidate its office footprint. 

“We’re going to be more proactive about cutting projects that aren’t performing or may no longer be as crucial,” Meta Chief Executive Officer Mark Zuckerberg stated last month. “But my main focus is on increasing the efficiency of how we execute our top priorities.”

Atlassian, for its part, also cited the need to better focus on key priorities as a motivation behind the layoffs it announced on Monday. In a memo, Atlassian co-founders and co-CEOs Scott Farquhar and Mike Cannon-Brookes emphasized the layoffs are “not a reflection of Atlassian’s own financial performance.” The executives added the company “will be reinvesting in roles that better support our priorities.”

Sydney-based Atlassian provides a broad range of software products for enterprises. It sells Jira Software, a popular task tracking application for developer teams, as well as productivity tools that cater to nontechnical users. Atlassian also offers an information technology service management, or ITSM, platform that administrators can use to perform tasks such as processing help desk tickets.

“As a company, we have massive growth opportunities in front of us, particularly across cloud migrations, ITSM, and serving our enterprise customers in the cloud,” Farquhar and Cannon-Brookes wrote. “Although hard, this rebalancing will help us put more wood behind these arrows.”

Atlassian will provide 15 weeks of severance pay to employees affected by the layoffs plus one additional week of pay for every year worked at the company. It will continue to provide healthcare benefits for six months, pay out unused paid time off and accelerate stock vesting. Affected workers will receive visa and outplacement support, as well as the option to apply to open positions at the company through an internal recruiting program.

Th company will take a charge of $70 million to $75 million in connection with the restructuring. It expects to incur the charge by the end of June.

Image: Meta