Atlassian slashes 10% of workforce to 'self-fund' investments in AI Atlassian's stock has dropped by over 50% this year, part of a broader decline in software stocks driven by rapid advancements in artificial intelligence. The company announced on Wednesday that it will eliminate 10% of its workforce, or approximately 1,600 jobs, as part of a restructuring effort to fund investments in AI and enterprise sales. CEO Mike Cannon-Brookes stated in a blog post that the decision aims to "self-fund further investment in AI and enterprise sales while strengthening our financial profile." Employees will be notified of their status via email. The cuts are expected to result in charges ranging from $225 million to $236 million and should be completed by the end of June. The company cited a significant drop in its stock price, which has been influenced by the evolving AI landscape. Atlassian, known for its Jira project tracking software, has been focusing on expanding the use of its Rovo AI features. In February, the company reported 5 million monthly users of Rovo, with Rovo credits integrated into its subscription plans. Year-over-year revenue growth has accelerated for the past three quarters, though the company has remained unprofitable since its 2015 initial public offering. Cannon-Brookes emphasized that AI is not replacing employees but is reshaping the required skill set and role distribution. "This is primarily about adaptation," he wrote, noting that the company is redefining how it operates to prepare for the future. Atlassian is also accelerating its path to sustained profitability, a goal that has eluded the company since its public listing. The workforce reduction follows similar moves by other tech firms.#atlassian #mike_cannonbrookes #jira #rovo_ai #block
