Elastic to reduce workforce by about 7% - TipRanks

The layoffs are part of a restructuring plan to align the organization with what the company describes as 'working in an age of AI automation.' The charges associated with the restructuring are expected to be recorded in fiscal 2027.

The announcement was made through a company statement, though specific details about which departments or geographies will be affected were not disclosed. The company did not provide a specific number of employees affected, but based on its most recent headcount, the reduction likely amounts to several hundred positions.

The layoffs come amid a broader trend of technology companies restructuring to incorporate AI capabilities more deeply into their operations. Elastic has been investing in AI features within its products, including generative AI search capabilities. The company's move to reduce headcount while emphasizing AI alignment reflects a pattern seen across the tech industry, where firms are reshaping their workforces to emphasize automation and machine learning expertise over traditional roles.