Software program big Atlassian has introduced it’s shedding about 10% of its workforce, or roughly 1,600 positions, and changing its chief expertise officer because it restructures to speculate additional in synthetic intelligence.
Greater than 900 affected positions had been concerned in software program analysis and growth, a spokesperson mentioned. Most of Atlassian’s workers work in software program engineering and design, accounting for over 50% of its 13,813 full-time workforce in June 2025.
About 640 affected workers are in North America, 480 in Australia and 250 in India, with the rest unfold throughout Japan, the Philippines, Europe, the Center East and Africa, in line with the spokesperson.
The corporate’s co-founder, Mike Cannon-Brookes, informed workers the transfer was “the appropriate choice for Atlassian” in a notice circulated late Wednesday, US time.
“However that doesn’t imply it’s simple,” he mentioned. “Removed from it. I do know this has a big impact on every of you, and it weighs closely on me and Atlassian immediately.”
Atlassian has misplaced greater than half its market worth because the begin of 2026 as merchants develop to worry AI will make the software program firm’s providers out of date. The share worth plunge has wiped greater than half the online value of the corporate’s Australian founders, Cannon-Brookes and Scott Farquhar.
Cannon-Brookes prompt in his assertion that AI use had modified the talents and roles the corporate wanted, permitting a restructure to strengthen the corporate’s monetary standing and “self-fund additional funding in AI and enterprise gross sales”.
Addressing the query of whether or not AI had changed the 1,600 sacked workers, he wrote: “Our strategy is just not ‘AI replaces individuals’. However it could be disingenuous to faux AI doesn’t change the combo of abilities we’d like or the variety of roles required in sure areas.”
Atlassian left its Slack work chat capabilities open for at the least six hours longer than normal, to allow workers to farewell their colleagues, Cannon-Brookes mentioned.
“To Atlassians who’re leaving us – I’m sorry for the affect it will have on you,” he wrote. “Thanks for every part you might have contributed to our epic story.”
The union representing Atlassian employees, Professionals Australia, mentioned impacted workers had been informed on Thursday, with a session course of to final till 19 March and remaining termination anticipated on 2 April.
Paul Inglis, a director at Professionals Australia, mentioned employees had been made redundant with out being consulted or given any signal a restructure would have an effect on their jobs.
“These are skilled professionals who’ve helped construct one in all Australia’s most profitable expertise corporations from the bottom up,” Inglis mentioned.
“They deserve respect, transparency and correct session when main selections about their livelihoods and their future careers are made.”
A whole lot of Australian Atlassian employees had joined the union to hunt a say in AI use within the workplaces forward of Atlassian’s “devastating blow,” he added.
A union spokesperson mentioned Professionals Australia had requested an pressing assembly to debate Atlassian’s introduction of AI expertise and its direct connection to the redundancies. Atlassian declined to remark.
Affected workers had been anticipated to obtain a minimal separation package deal of 16 weeks’ pay, prolonged healthcare plans and early professional rata bonuses, in addition to a US$1,000 “expertise fee” as soon as they returned their company laptop computer.
Staff would additionally obtain “non-compulsory” one-on-one calls with HR. These with scheduled parental go away could be paid out in full, whereas further help could be supplied to these on visas or on the lookout for new jobs within the firm.
Australian workers who’re in the end made redundant shall be paid however not anticipated to work for his or her remaining three weeks at Atlassian.
The corporate reported redundancies and associated prices had been anticipated to whole as much as $174m (A$246m), whereas workplace house reductions would contain exit expenses of at the least $62m (A$87m). Most prices could be incurred by the tip of March and paid by the tip of June.
Related cuts in different tech corporations attributed to AI
Atlassian has grown its income by attracting subscriptions to its workflow apps, together with Jira, Confluence and Trello, recording US$1.6bn (A$2.3bn) income within the final three months of 2025, up US$300m from the prior yr.
It’s not worthwhile and has recorded hundreds of thousands in losses yearly since 2017, together with a internet lack of US$42m within the final three months of 2025, up from US$38m the prior yr.
Cannon-Brookes mentioned the restructure would speed up the corporate’s progress in the direction of breaking even. Buyers purchased into Atlassian after the announcement, sending its share worth up 4% in prolonged buying and selling on the Nasdaq.
Atlassian informed regulators on Wednesday the restructure would additionally see its chief expertise officer, Rajeev Rajan, step down on the finish of March, to get replaced collectively by Taroon Mandhana and Vikram Rao, described as “subsequent technology AI expertise”.
Atlassian’s redundancy spherical comes weeks after related cuts attributed to AI by tech big Block, the proprietor of Afterpay, and Australian expertise agency WiseTech.
Block reduce 40% of its world workforce, from 10,000 to beneath 6,000, with cofounder Jack Dorsey saying enhancements in productiveness as a consequence of AI had “basically” modified the corporate.
WiseTech introduced it could reduce 2,000 jobs over two years – about 30% of its workforce.
Each corporations had seen their share costs plunge over the previous six months and analysts have prompt every had cause to chop headcount aside from AI use alone.
