Atlassian (TEAM) traded lower as the market continued to digest the company’s March 11, 2026 restructuring plan, which reduces headcount by roughly 10% and is designed to shift resources toward AI initiatives and enterprise sales while optimizing long-term efficiency. The company said it expects $225 million to $236 million of total charges tied to the move, including $169 million to $174 million of future cash outlays for severance and related employee costs and $56 million to $62 million for office-space exit charges.

In its restructuring disclosure, Atlassian said most charges are expected to be incurred in fiscal Q3 2026 and that the actions (including cash payments) are expected to be substantially complete by the end of fiscal Q4 2026. The company also said it intends to exclude the restructuring charges from its non-GAAP financial measures and reaffirmed previously issued guidance for fiscal Q3 2026 and the full fiscal year ending June 30, 2026.

TEAM’s decline also comes amid a risk-off backdrop for growth and software stocks as markets weigh higher inflation expectations and increasing probabilities of a Federal Reserve hike later in 2026. That environment typically pressures longer-duration equities, amplifying downside moves in richly valued software names even without a same-day company-specific headline.