Australian software company Atlassian has announced plans to lay off around 1,600 employees, representing roughly 10% of its global workforce. The move is part of a broader restructuring strategy as the company shifts its focus toward artificial intelligence-driven tools and next-generation cloud products.

Atlassian, best known for workplace collaboration tools such as Jira, Confluence, and Trello, said the layoffs are intended to streamline operations and redirect resources toward faster-growing areas of its business.

In a statement, company executives explained that the decision was made after evaluating long-term market trends and the increasing role of AI in enterprise software. The company aims to strengthen its investment in automation, AI-powered productivity tools, and cloud infrastructure.

The layoffs will affect employees across multiple departments globally, although Atlassian stated that it will provide affected workers with severance packages, career support services, and transition assistance.

The tech industry has experienced a wave of job cuts in recent years as companies restructure after rapid hiring during the pandemic era. Many firms are now focusing on efficiency, profitability, and strategic investments in artificial intelligence technologies.

Despite the workforce reduction, Atlassian emphasized that it remains financially strong and committed to innovation. The company plans to continue expanding its cloud platform and developing new AI-powered features to improve collaboration and productivity for businesses worldwide.

Industry analysts note that the restructuring reflects a larger shift across the technology sector, where companies are prioritizing AI integration and scalable cloud services as key drivers of future growth.