Atlassian Stock (TEAM) Rises on News of 10% Workforce Reduction

FomoAnxiety · 2026-03-12T07:32:44+00:00

Atlassian plans to cut 10% of its workforce, approximately 1,600 jobs, to focus on AI and enterprise sales amidst a 53% stock decline. This restructuring aims to enhance efficiency and drive strategic priorities, although it will incur significant costs.

FomoAnxiety

2026-03-12 07:32:44

Abstract generation in progress

Atlassian TEAM -3.28% ▼ stock was up about 2% in Wednesday’s extended trading session after the software company announced that it is cutting its workforce by 10%. The move comes as TEAM stock has plunged more than 53% amid fears that generative artificial intelligence (AI) tools such as Anthropic’s Claude Cowork will disrupt traditional enterprise software companies.

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Here’s Why Atlassian Is Slashing 10% of Employee Base

Atlassian said that this restructuring, which involves the elimination of about 1,600 jobs, will help “rebalance” the company and self-fund key strategic priorities, including AI and enterprise sales. CEO Mike Cannon-Brookes highlighted AI and enterprise sales as two areas that are accelerating and where the company has high momentum.

The company also expects this move to help reorganize its teams to enhance focus and speed, as well as drive long-term operational efficiency. Atlassian added that as part of its restructuring efforts, Rajeev Rajan will step down from the role of the company’s chief technology officer.

Atlassian expects to record charges of about $225 million to $236 million in connection with these layoffs. Most of these charges are expected to be incurred in Q3 FY26, with the execution of these initiatives, including cash payments, expected to be mostly completed by the end of the fiscal fourth quarter.

Several other companies are also streamlining their operations and trimming their workforce amid fears of AI-led disruption. Recently, fintech company Block XYZ -1.48% ▼ announced that it would eliminate about 40% of its workforce.

Is TEAM Stock a Good Buy?

Despite ongoing challenges, Wall Street has a Strong Buy consensus rating on Atlassian stock based on 19 Buys and three Holds. The average TEAM stock price target of $169.57 indicates about 125% upside potential.

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