Jira (cloud) will send notifications to the watchers when a comment has been added. However, we also need it to send notifications when the status changes (for example: from In Progress to Needs Testing).
Can you provide information on how to accomplish this?
You can accomplish that with Automation for Jira. Just create a trigger for Issue Transitioned and add a new action for Send Email.
Here is some more information about Automation if you are not familiar with it:
There are two types of automation:
Automation Basics: https://www.atlassian.com/software/jira/guides/expand-jira/automation
You can do this via global rules to apply to all projects also. You'll need to be a Jira Admin/Site Admin, go to Jira Settings > System > Automation Rules (left-hand menu).
For more on using Automation For Jira see these help pages.
Jira Automation Template Library to help get you started quickly:
Is this for a Team Managed project or a Company Managed project?
Do you want the emails sent for every status change or only specified status changes?
If for a Team Managed project, or emailing for only certain status changes, then I concur with @John Funk 's suggestions.
If this is a Company Managed project and you want email sent for every status transition, then you can modify the Notification Scheme to handle that.
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