The software company is laying off 1,600 employees to restructure and self-fund growth in artificial intelligence and enterprise sales.
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Atlassian announced it will eliminate approximately 1,600 positions, representing 10% of its global workforce, as part of a strategic restructuring effort. The Australian software company, known for collaboration tools like Jira and Confluence, said the cuts will help "self-fund" investments in artificial intelligence and enterprise sales capabilities.
The layoffs reflect broader industry trends as tech companies balance cost management with AI investment demands. Atlassian joins other major software firms that have reduced headcount while pivoting resources toward artificial intelligence development and expanding enterprise customer acquisition.
The 1,600 job cuts represent one of the larger workforce reductions in the enterprise software sector this year. Atlassian has not disclosed the financial savings expected from the restructuring, but the company indicated the funds will be redirected toward AI research and development plus enterprise sales team expansion.
Affected employees will receive severance packages, though specific terms were not disclosed. The restructuring is expected to position Atlassian more competitively in the AI-enhanced productivity software market, where companies like Microsoft and Google are making significant investments.