Atlassian Corp., co-founded by Mike Cannon-Brookes, is set to lay off approximately 1,600 employees, accounting for 10% of its workforce, as part of a major restructuring effort. This announcement, made on December 6, 2023, follows a significant decline in the company’s stock price, influenced by trends in artificial intelligence. Cannon-Brookes emphasized the need for these layoffs to facilitate further investment in AI technologies and enterprise sales while aiming to enhance the company’s financial standing.
In a blog post, Cannon-Brookes stated that employees would receive notifications regarding their job status via email. This move comes as Atlassian has experienced a staggering drop in market value, losing over half of its worth this year. The decline reflects broader concerns within the tech sector surrounding the competitive risks presented by generative AI tools, including Anthropic’s Claude Cowork. Since its peak in 2021, Atlassian’s stock has plummeted by 84%, even after enjoying exceptional growth during the pandemic, when demand for cloud-based collaboration tools surged among remote workers.
The restructuring will result in estimated charges ranging from $225 million to $236 million, with the company anticipates completing most of the layoffs by the end of June. Known for its popular Jira project management software, Atlassian has been actively working to boost usage of its Rovo AI features, which it reported reached 5 million monthly users earlier this year. The company has also introduced Rovo credits within its subscription packages, highlighting a recent trend of revenue growth that has accelerated over the previous three quarters.
Earlier in 2023, Atlassian had already reduced its workforce by 5%, or around 500 employees, signaling an ongoing challenge within the organization. The company, like many in the tech sector, has been focusing on AI innovation even as it reduces its headcount. In a similar vein, Jack Dorsey of Block announced earlier this year that the payment processing company would lay off 4,000 employees to integrate “intelligence” at the core of its operations.
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Original Source: https://www.cnbc.com/2026/03/11/atlassian-slashes-10percent-of-workforce-to-self-fund-investments-in-ai.html
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Publish Date: 2026-03-12 03:32:00
