Atlassian layoffs: Software giant cuts 10% of workforce to ‘self-fund AI investment’

Software giant Atlassian announced Wednesday that it will lay off 1,600 employees, or about 10% of its workforce. The company’s shares rose nearly 2% in extended trading after the company announced layoffs, Reuters reported.

In a memo to employees, Atlassian co-founder Mike Cannon-Brookes wrote: “I believe this was the right decision for Atlassian. But that doesn’t mean it was easy. Far from it. I know this has had a huge impact on each of you, and it weighs heavily on me and Atlassian today.”

Brookes added that the decision to cut the workforce was taken to strengthen the company’s financial profile as well as ‘equity-fund further investment in artificial intelligence and enterprise sales’.

“We are also changing the way we work and realigning our Working System to move faster.” Brooks noted in the memo: