Atlassian plans to cut around 1,600 jobs as it shifts focus to AI

Atlassian Announces Workforce Reduction Amid Strategic Shift

On March 11, Atlassian revealed plans to cut approximately 10% of its staff—about 1,600 employees—as part of a broader restructuring effort aimed at expanding its presence in artificial intelligence and boosting enterprise sales.

Following the announcement, the company's stock price climbed over 4% in after-hours trading.

Atlassian anticipates incurring pre-tax expenses ranging from $225 million to $236 million, stemming from both the layoffs and reductions in office space.

This decision is part of Atlassian's initiative to realign its resources and concentrate on advancing collaboration in the age of AI, according to a recent regulatory disclosure.

Reported by Jaspreet Singh in Bengaluru; Edited by Sahal Muhammed