Atlassian slashes 10% of workforce to ‘self-fund’ investments in AI and enterprise sales

Atlassian is cutting approximately 1,600 employees (10% of its workforce) to redirect funds toward AI development and enterprise sales. CEO Mike Cannon-Brookes framed the move as a restructuring to 'self-fund' investments rather than a direct AI replacement of workers, though he acknowledged AI changes the skill mix required. The company's stock has fallen over 84% from its 2021 peak amid broader software sector selloffs driven by generative AI competition concerns. The layoffs will incur $225–$236 million in charges and are expected to complete by end of June. Atlassian has been promoting its Rovo AI features, which reached 5 million monthly users in February, and is also accelerating its path to profitability after years of losses.