I am managing a JIRA Cloud instance and we have 2 site-admins, but a bunch of admins (project level). Is there a way then can manage their own groups (adding, removing users)?
No, you need site admins to do group maintenance. I don't think that's going to change, as it's the basic principle that groups are organisational objects that may well have wider implications.
But, the main point of the "roles" functionality is to delegate user access to the project administrators. Project admins can select who is in their project by maintaining who is in what role.
@Jobin Kuruvilla [Go2Group] and @Nic Brough [Adaptavist] have given good answers but there is an even more fundamental reason why site-admins can perform group manipulations and regular admins cannot and it follows a simple rule:
Only 'site-admins' should be able to perform actions that will affect how much you pay.
If regular admins could make group manipulations then this would break the rule. They could put users that did not have access to an Atlassian Product into a group that gave them access which could result in a tier bump and more money being paid per month. Thus, if you put somebody in the 'site-admins' group then you are effectively saying: I am giving this person the power to make changes that will affect our bill. It is for this reason that only site-admins can install paid add-ons while regular admins can only install free add-ons.
It is possible that, eventually, Atlassian may make it so that regular admins can make group-user modifications that don't affect the bill (and error out on the other actions). But this work has not been done and will not likely happen soon.
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