Atlassian lays off 1,600 workers ahead of AI push
2 days ago
- #Corporate Restructuring
- #Tech Layoffs
- #Artificial Intelligence
- Atlassian announces layoffs of 10% of its workforce (1,600 employees) as part of restructuring to invest more in AI.
- Over 900 affected positions are in software R&D; layoffs span North America, Australia, India, and other regions.
- Co-founder Mike Cannon-Brookes states the layoffs are necessary due to AI changing required skills and roles.
- Atlassian's market value has dropped by over half since 2026, with AI fears impacting its services.
- Affected employees will receive severance packages including 16 weeks' pay, healthcare, and bonuses.
- Union Professionals Australia criticizes lack of consultation and transparency in the layoffs.
- Atlassian's CTO Rajeev Rajan will step down, replaced by AI-focused executives Taroon Mandhana and Vikram Rao.
- Similar AI-driven layoffs have occurred at Block (40% workforce cut) and WiseTech (30% workforce cut).
- Atlassian reports restructuring costs up to $174M, with office space reductions adding $62M in exit charges.
- Despite losses, Atlassian's revenue grew to $1.6B in late 2025, with restructuring aimed at reaching profitability.