After Atlassian announced layoffs, the stock price rose

LootboxPhobia · 2026-03-11T23:43:34+00:00

Atlassian Corp Plc announces plans to cut approximately 10% of its staff to optimize operations and accelerate investments in artificial intelligence and enterprise sales. The restructuring costs are expected to range from $225 million to $236 million, primarily for severance and office space reductions. The related expenses will be recorded in the third quarter of fiscal year 2026.

LootboxPhobia

2026-03-11 23:43:34

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Investing.com – Atlassian Corp Plc (NASDAQ:TEAM) stock rose 1.9% in after-hours trading on Wednesday after the company announced a restructuring plan to cut about 10% of its workforce.

The software company said the restructuring aims to realign operations and accelerate investments in AI and enterprise sales. Atlassian stated that these changes will help reorganize teams to focus more quickly on work within the System of Work platform while optimizing long-term operational efficiency.

Atlassian expects to incur $225 million to $236 million in restructuring-related costs. Of these, approximately $169 million to $174 million will be used for future cash expenditures, including severance, notice periods, employee transitions, and benefits. An additional $56 million to $62 million is expected for exit costs related to office space reductions.

The company plans to exclude these costs from its non-GAAP financial metrics. Most of the expenses are expected to be recognized in the third quarter of fiscal year 2026, with the implementation and cash payments largely completed by the end of the fourth quarter of fiscal year 2026.

Layoffs in each country will comply with local laws and consultation requirements. Atlassian noted that actual costs could differ significantly from current estimates, and the company may incur additional expenses or cash outflows due to unforeseen events during implementation.

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