Atlassian announced it is laying off approximately 10% of its global workforce — around 1,600 people — to redirect resources toward AI development and enterprise sales. The company estimates restructuring costs up to $236 million. It simultaneously replaced its CTO with two new AI-focused executives in the role.

This is now a recurring pattern in enterprise software. A company that built its reputation on collaborative tools announces it is dismantling some of its human workforce to build AI replacements for that workforce’s output. The framing is always “investment in the future.” The experience for the people being let go is something else.

Atlassian announced it’s laying off roughly 10% of its global workforce — about 1,600 people — to redirect resources toward AI development and enterprise sales. Restructuring costs are expected to reach up to $236 million.

The company also replaced its Chief Technology Officer with two new AI-focused CTOs. That’s not a succession. That’s a signal about where the org chart is being reorganized around.

Atlassian makes Jira, Confluence, and Trello — collaboration and project management tools embedded in tens of thousands of enterprise workflows. The play is presumably to layer AI agents into those products and charge more for the intelligence layer.