Atlassian unveiled a company-wide restructuring to cut about 1,600 jobs, roughly 10% of its global workforce, as it pivots to accelerate its artificial intelligence and enterprise-growth strategy.

CEO Mike Cannon-Brookes said the move isn’t about AI replacing people, but will change required skills and the mix of roles in certain areas.

About 30% of the affected roles are based in Australia, with specifics disclosed in an SEC filing.

Most restructuring charges are expected to be recorded in the third quarter of the company’s fiscal year 2026, with actions and cash outlays largely completed by the fourth quarter.

The cuts come as investors demand growth, profitability, speed, and value creation, against a backdrop of volatile market capitalization and recent stock performance.

Atlassian’s stock has fallen about two-thirds over the past year, trading near $75–$105 per share, with after-hours trading rising after the announcement.

Founded in 2002 and listed in 2015, Atlassian has struggled to achieve consistent profitability and hasn’t been profitable since fiscal 2017.

The company describes this as a developing story with updates expected as more details emerge.

Restructuring-related charges are estimated at roughly $225 million to $236 million, including severance and office-space reductions, with substantial completion targeted by year-end.

The layoff plan includes about $169–$174 million in future cash outlays for severance, notice periods, transitions, and benefits, plus $56–$62 million in office-space exit charges.

While timing and regional specifics aren’t fully detailed in the excerpt, the financial impact and strategic rationale center the story.

Cannon-Brookes highlighted momentum in cloud revenue growth, strong remaining performance obligations, and milestones like 600 enterprise customers spending over $1 million annually and over five million users of the Rovo AI suite.