Today, we announced an organizational change at Elastic, including a reduction of approximately 7% of our workforce.

These decisions are never easy because they affect people who have contributed meaningfully to our company. They have helped build our company; their impact is real and lasting, and I thank them.

I want to explain the why and the what's next.

The industry is changing. Advances in AI, automation, and technology are reshaping how work gets done, and we're changing with them. Customer expectations are increasing and evolving faster than ever before, and this requires us to move faster and operate leaner than we have before. We provide the data store and context engine for the technology that is changing the world, and we help observe and protect the infrastructure that runs it. We're in a great position to lead here. To do it, we're shifting our pace of innovation, simplifying how we operate, and investing in new skills. That's what this reorganization is for: a simpler structure, with fewer layers, less complexity, and less friction.

To be more specific: in some areas, especially customer-facing sales, we expect to keep adding to our teams to support future growth. In others, advances in AI and automation are letting us operate with leaner teams. And in engineering, where the nature of the work is evolving fastest, we're simplifying into three core areas, each led by a senior leader who reports directly to me. 

That means fewer layers, broader ownership, clearer accountability, and a sharper focus on the skills we believe matter most for what's ahead.

We're at a unique moment: every new frontier model release opens up possibilities while challenging our assumptions. Succeeding in that environment means moving quickly, deciding decisively, and adapting continuously, and this structure is built to do exactly that.

I want to be clear about where this leaves us. The changes we announced today are a sign of confidence in the business, not a retreat from it. We continue to invest in key growth areas and expect total headcount to grow year-over-year this fiscal year as we build the skills and capabilities needed to sustain our momentum.

We're in an outstanding position and well-equipped for the future. I'm excited about the opportunities ahead and focused on making sure Elastic is positioned to lead in this next phase of innovation.

And most importantly, I’m thankful to our employees for everything they do—for our customers, our partners, our teammates, and Elastic.