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Atlassian Cuts 1,600 Jobs in AI-Focused Restructuring

Investors sent the shares higher after-hours on assurances the savings will fund AI initiatives.

Overview

  • The company says the reductions, roughly 10% of staff, will help self-fund AI development and enterprise sales, with most actions completed by the end of June according to an SEC filing.
  • Atlassian expects $225 million to $236 million in restructuring charges, largely recorded in the current third quarter, covering severance and office space exits.
  • Chief technology officer Rajeev Rajan will step down effective March 31 as the company reorients its engineering plans for an AI-first roadmap.
  • Cuts are heavily weighted to technical roles, including more than 900 positions in software R&D; about 40% of layoffs are in North America, 30% in Australia (≈480 roles), and around 16% in India.
  • Impacted employees were notified within minutes and will receive at least 16 weeks of pay with additional benefits and a $1,000 technology stipend; shares rose roughly 1%–4% in extended trading.