Mike Cannon-Brookes, co-founder of Atlassian Corp., in Sydney, Australia, on Dec. 6, 2023.
Lisa Maree Williams | Bloomberg | Getty Images
Atlassian said on Wednesday that it’s eliminating 10% of its workforce, or about 1,600 jobs, as the company restructures following a plunge in its stock price driven by developments in artificial intelligence.
“We are doing this to self-fund further investment in AI and enterprise sales, while strengthening our financial profile,” CEO Mike Cannon-Brookes said in a blog post. He said employees would be notified of their status by email.
Atlassian has lost more than half its value this year alongside a broader selloff in software stocks brought on by concerns about the competitive threat of generative AI tools such as Anthropic’s Claude Cowork. The stock is down 84% from its peak in 2021. It had been a big winner during the Covid era as cloud-based collaboration tools surged in popularity with office workers stuck at home.
The cuts will result in $225 million to $236 million in charges and should be mostly done by the end of June, the company said in a filing.
In 2023 Atlassian trimmed 500 employees, or 5% of its headcount. The maker of Jira project tracking software has been trying to expand demand of its Rovo AI features, and in February the company touted 5 million monthly users.
Atlassian offers Rovo credits in its subscriptions, and the company’s year-over-year revenue growth has accelerated for the past three quarters.
This is developing news. Please check back for updates.