https://www.reuters.com/technology/atlassian-lay-off-about-1600-people-pivot-ai-2026-03-11/ Skip to main content Exclusive news, data and analytics for financial market professionals Learn more aboutRefinitiv * World Browse World + Africa + Americas + Asia Pacific + China + Europe + India + Israel and Hamas at War + Japan + Middle East + Ukraine and Russia at War + United Kingdom + United States + Reuters NEXT New York * Business Browse Business + Aerospace & Defense + Autos & Transportation + Davos + Energy + Environment + Finance + Healthcare & Pharmaceuticals + Media & Telecom + Retail & Consumer + Future of Health + Future of Money + Take Five + World at Work * Markets Browse Markets + On the Money + Watchlist + Asian Markets + Carbon Markets + Commodities + Currencies + Deals + Emerging Markets + ETFs + European Markets + Funds + Econ World + Global Market Data + Rates & Bonds + Stocks + U.S. Markets + Wealth * Sustainability Browse Sustainability + Boards, Policy & Regulation + Climate & Energy + Land Use & Biodiversity + Society & Equity + Sustainable Finance & Reporting + The Switch + Reuters Impact + COP30 * More Legal + Government + Legal Industry + Litigation + Transactional + US Supreme Court Commentary + Breakingviews + ROI: Reuters Open Interest Technology + Artificial Intelligence + Cybersecurity + Space + Disrupted Investigations Sports + Winter Olympics + Athletics + Baseball + Basketball + Cricket + Cycling + Formula 1 + Golf + NFL + NHL + Soccer + Tennis Science Lifestyle + Culture Current City Memo Graphics + Chart of the Week Pictures Wider Image Podcasts + Reuters World News + Reuters Econ World + On Assignment + Viewsroom + The Big View Live Fact Check Video Media Center + Announcements + Awards + Inside the Newsroom + People News Sponsored Content + Reuters Plus + Press Releases Subscribe Atlassian to cut roughly 10% jobs in pivot to AI By Jaspreet Singh March 11, 20269:26 PM UTCUpdated ago * * * * * * * * Illustration shows words "Artificial Intelligence AI\ Figurines with computers and smartphones are seen in front of the words "Artificial Intelligence AI" in this illustration created on February 19, 2024. REUTERS/Dado Ruvic/Illustration/File Photo Purchase Licensing Rights, opens new tab March 11 (Reuters) - Atlassian (TEAM.O), opens new tab said on Wednesday it would lay off around 10% of its workforce, or 1,600 employees, to push into artificial intelligence and enterprise sales. Shares of the enterprise software company rose nearly 2% in extended trading after Atlassian said it plans to "rebalance" its resources to focus on the "future of teamwork in the AI era." Sign up here. The company expects to incur about $225 million to $236 million in charges related to the layoffs and office space reductions, according to a regulatory filing. The majority of these charges will be incurred in the third quarter. "We are doing this to self-fund further investment in AI and enterprise sales, while strengthening our financial profile. We're also changing the way we work and reorganising around our System of Work to move faster," CEO Mike Cannon-Brookes said in a memo to employees. The move comes as investors increasingly scrutinize software firms amid fears that advances in artificial intelligence could disrupt traditional software business models, though some analysts say the sector-wide selloff may be an overreaction. Top executives at the World Economic Forum's annual meeting in January had said that while jobs would disappear, new ones would spring up, with two telling Reuters that AI would be used as an excuse by companies that were already planning layoffs. Atlassian, whose shares were down around 33% last year, derives a majority of its revenue from its collaboration tools, including Jira software for planning and project management and Confluence for content creation. Shares of software companies face pinch as investors fear AI disruption Shares of software companies face pinch as investors fear AI disruption "Software companies such as Atlassian have an opportunity to make their business more efficient by adopting AI tools, especially within their product development. By reorganizing that way they can reduce the resources necessary to deliver their current business and grow more profitably," said D.A. Davidson analyst Gil Luria. The company said that Rajeev Rajan will step down from the role of chief technology officer, effective March 31, after almost four years with the company. Atlassian expects the restructuring plan to be substantially complete by the end of the fourth quarter. Reporting by Jaspreet Singh in Bengaluru; Editing by Sahal Muhammed and Alan Barona Our Standards: The Thomson Reuters Trust Principles., opens new tab * Suggested Topics: * Technology * * * * * Purchase Licensing Rights Read Next * agoBusinesscategory Pentagon opens door to exempt Anthropic use beyond 6-month ramp-down, memo says 'U.S. Department of War' and Anthropic logos * agoTechnologycategory Nvidia to invest $2 billion in neocloud Nebius amid AI data center push Nvidia logo in Paris * agoBusinesscategory Musk unveils joint Tesla-xAI project 'Macrohard', eyes software disruption Saudi-U.S. Investment Forum, in Riyadh * agoBusinesscategory Bumble shares soar as turnaround efforts power upbeat quarterly revenue The Bumble Inc. 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