Atlassian is cutting 1,600 jobs and replacing its CTO, Rajeev Rajan, in a bid to adapt to the AI era, with approximately 10% of the company's global workforce cut. The layoffs, which are expected to cost between $225 million and $236 million, are part of a future-facing strategy that will allow the company to self-fund further investment in AI and enterprise sales, while bolstering its financial profile. The company's shares have since lost over half their value since January due to fears that AI agents could make conventional SaaS tools obsolete. The restructuring is expected to be largely completed by the end of June 2026. Alongside the layoffs, Atlassian confirmed that Rajeeva Rajan will step down as CTO on 31 March, after nearly four years in the role.