Atlassian said it will eliminate about 10 percent of its workforce, or roughly 1,600 jobs, as the company restructures to fund additional investment in artificial intelligence and enterprise sales.
Chief Executive Officer Mike Cannon-Brookes said the layoffs are intended to help the company strengthen its financial position while accelerating its push into AI-driven products.
The Sydney-based firm said employees would be informed of their status by email, and the restructuring is expected to result in charges of $225 million to $236 million, largely completed by the end of June.
The maker of Jira has been expanding its AI offerings, including its Rovo AI tools, which the company said had about 5 million monthly users earlier this year.
Atlassian's stock has fallen sharply amid a broader selloff in software companies driven by concerns over the competitive impact of generative AI tools such as Claude. Shares of the company are down more than 80 percent from their 2021 peak.
Cannon-Brookes said the changes are not about replacing employees with AI but adjusting the company's skill mix as technology reshapes how software firms operate.
Atlassian, which went public in 2015, has also been working toward sustained profitability after reporting losses in each fiscal year since 2017.
For comments and feedback: editorial@rttnews.com