Vibe Coding is Thriving, Just Not at Atlassian

There’s no “I” in team, and there’s no bottom for AtlassianTEAM

either. The collaboration software group’s stock has become the NASDAQ 100’s worst performer this year, with shares halving as investors bet AI will eat its business. Despite the selloff, CEO Mike Cannon-Brookes insists the company remains solid, while bracing for “the biggest upheaval” in 25 years.

• Investors fear the “SaaSpocalypse,” where AI tools like Claude let companies build their own software — and simultaneously lay off programmers who once made up Atlassian’s user base.
• Cannon-Brookes counters that investors underestimate customer relationships — pointing to “very, very positive” discussions, as well as a global footprint spanning three continents.

Reading the room: That optimism requires serious surgery. Atlassian is cutting 10% of its workforce (~1.6K employees), while replacing its CTO and promoting two “next-generation AI talent” leaders to spearhead the company’s reinvention. It marks what FT describes as the biggest shake-up since Atlassian’s founding. The progress is going strong, with the company slashing its net loss from $124M in Q1 2025 to $62M a year later. And while Cannon-Brookes still calls it a “bloody great” business, the reality isn’t as generous.