Australian American proprietary software company Atlassian is planning for layoff. The company said that they will fire about 10 per cent of its workforce, which is roughly 1,600 jobs, as the company restructures to fund new investments in artificial intelligence and enterprise sales.

Mike Cannon-Brookes, ChiefExecutiveof thecompany,said that the layoffs areintended to allow the company to self-fundadditionalspending onthe AIinitiative while improving its financial position. The employees who will befiredduring the layoff will be notified through e-mail.

Mike wrote in a company blog post that "We are doing this to self-fund further investment in AI and enterprise sales, while strengthening our financial profile"

The company hasexperienced a sharp declineinthestocks’charge as investors reassess the outlook for traditional software companies amid rapid advancesin generative AI.

Stock Market Performance

The shares of the company have lost more than half theirvalue in 2026, and the stock is now down about 84 per cent from its 2021 peak. The broader sector has also facedpressure from concerns that new AI tools consisting of ClaudeCoworkfrom Anthropic, could redesign how knowledge workers collaborate. However, the company has gained 1 per cent in extended tradingdespitethe layoff announcement.

The restructuring of the finance is likely to result in charge of between $225 million and $236 million, as perthe company filing with most of the reductions expected to be completed by the end of June 2026.

AI Expansion Plan

The company has been gearing up to boost adoption of its AI tools, particularlyRovo, which is integrated into several of the company's collaboration platforms. The companystatedin February thatRovoAI had reached around 5million monthly users. The Australian American company also bundlesRovocredits into its subscription offering to encourage adoption.

The company is known for software tools used by development and product teams,consisting ofits popularmanagementplatform,Jira.