Atlassian, a maker of collaboration software for businesses, will cut about 1,600 employees, about 10 percent of its workforce, to boost investment in AI and strengthen enterprise sales, CNBC reported on Tuesday.
Atlassian CEO Mike Cannon-Brookes (마이크 캐넌-브룩스) said in a blog post the move is intended to internally fund investment needed for AI and enterprise sales and to strengthen its financial structure. Employees will be notified by email on whether they are being laid off.
Atlassian grew rapidly during the COVID-19 pandemic as demand rose for cloud-based collaboration tools, but its share price has fallen 50 percent so far this year amid intensifying competition in generative AI, and is down 84 percent from its 2021 peak.
The layoffs are expected to cost $225 million to $236 million, and all procedures are expected to be completed by year-end.
Atlassian also cut 500 employees last year, or 5 percent of its workforce. Atlassian, which developed the Jira project management software, is accelerating the rollout of its AI-based features, Rovo.
Chi-gyu Hwang
delight@d-today.co.kr