Software company Atlassian announced plans to reduce its workforce by approximately 10% as part of a strategic shift to invest more heavily in artificial intelligence capabilities and enterprise sales operations.

The Australian-based company, known for workplace collaboration tools including Jira and Confluence, characterized the layoffs as a way to "self-fund" its expansion into AI and enterprise market segments. The cuts represent a significant workforce reduction for the company, which has grown substantially in recent years.

Atlassian's decision reflects broader trends in the technology sector, where companies are restructuring operations to prioritize AI development amid increased competition and investor focus on artificial intelligence capabilities. Many tech firms have implemented similar workforce reductions while simultaneously increasing spending on AI research and development.

The company has not disclosed the exact number of employees affected or provided a timeline for the layoffs. Atlassian employs thousands of workers globally across offices in Australia, the United States, and other international locations.

The restructuring comes as Atlassian faces pressure to maintain growth while adapting to changing market demands. Enterprise customers increasingly expect AI-powered features in workplace software, driving companies to reallocate resources toward developing these capabilities.