Software large 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.
More than 900 affected positions have been concerned in software program analysis and growth, a spokesperson stated. Most of Atlassian’s staff work in software program engineering and design, accounting for over 50% of its 13,813 full-time workforce in June 2025.
About 640 affected staff are in North America, 480 in Australia and 250 in India, with the rest unfold throughout Japan, the Philippines, Europe, the Middle East and Africa, in keeping with the spokesperson.
The firm’s co-founder, Mike Cannon-Brookes, instructed staff the transfer was “the right decision for Atlassian” in a observe circulated late Wednesday, US time.
“But that doesn’t mean it’s easy,” he stated. “Far from it. I know this has a huge impact on each of you, and it weighs heavily on me and Atlassian today.”
Atlassian has misplaced greater than half its market worth because the begin of 2026 as merchants develop to worry AI will make the software company’s services obsolete. The share worth plunge has wiped greater than half the web value of the corporate’s Australian founders, Cannon-Brookes and Scott Farquhar.
Cannon-Brookes advised in his assertion that AI use had modified the abilities and roles the corporate wanted, permitting a restructure to strengthen the corporate’s monetary standing and “self-fund further investment in AI and enterprise sales”.
Addressing the query of whether or not AI had changed the 1,600 sacked staff, he wrote: “Our approach is not ‘AI replaces people’. But it would be disingenuous to pretend AI doesn’t change the mix of skills we need or the number of roles required in certain areas.”
Atlassian left its Slack work chat features open for a minimum of six hours longer than standard, to allow staff to farewell their colleagues, Cannon-Brookes stated.
“To Atlassians who are leaving us – I’m sorry for the impact this will have on you,” he wrote. “Thank you for everything you have contributed to our epic story.”
The union representing Atlassian employees, Professionals Australia, stated impacted staff have been instructed on Thursday, with a session course of to final till 19 March and last termination anticipated on 2 April.
Paul Inglis, a director at Professionals Australia, stated employees had been made redundant with out being consulted or given any signal a restructure would have an effect on their jobs.
“These are experienced professionals who have helped build one of Australia’s most successful technology companies from the ground up,” Inglis stated.
“They deserve respect, transparency and proper consultation when major decisions about their livelihoods and their future careers are made.”
Hundreds 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 stated 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 staff have been anticipated to obtain a minimal separation bundle of 16 weeks’ pay, prolonged healthcare plans and early professional rata bonuses, in addition to a US$1,000 “technology payment” as soon as they returned their company laptop computer.
Employees would additionally obtain “optional” one-on-one calls with HR. Those with scheduled parental go away could be paid out in full, whereas further assist could be provided to these on visas or searching for new jobs within the firm.
Australian staff who’re in the end made redundant will likely be paid however not anticipated to work for his or her last three weeks at Atlassian.
The firm reported redundancies and associated prices have been anticipated to whole as much as $174m (A$246m), whereas workplace area reductions would contain exit costs of a minimum of $62m (A$87m). Most prices could be incurred by the top of March and paid by the top of June.
Similar cuts in different tech firms 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 12 months.
It isn’t worthwhile and has recorded tens of millions 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 12 months.
Cannon-Brookes stated the restructure would speed up the corporate’s progress in direction of breaking even. Investors purchased into Atlassian after the announcement, sending its share worth up 4% in prolonged buying and selling on the Nasdaq.
Atlassian instructed 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 “next generation AI talent”.
Atlassian’s redundancy spherical comes weeks after comparable cuts attributed to AI by tech giant Block, the proprietor of Afterpay, and Australian expertise agency WiseTech.
Block reduce 40% of its international workforce, from 10,000 to below 6,000, with cofounder Jack Dorsey saying enhancements in productiveness as a result of AI had “fundamentally” modified the corporate.
WiseTech introduced it will reduce 2,000 jobs over two years – about 30% of its workforce.
Both firms had seen their share costs plunge over the previous six months and analysts have advised every had purpose to chop headcount aside from AI use alone.
