Atlassian cuts 1,600 jobs in 10% workforce reduction to fuel AI investments and enterprise sales

Atlassian follows Block's footsteps and cuts staff in the name of AI | TechCrunch

Australian productivity software company Atlassian held layoffs as the company looks to funnel more money into AI. Atlassian announced it's cutting 10% of its workforce, around 1,600 people, on March 11. The company said this decision allows it to spend more funds on AI, enterprise sales, and to strengthen its finances. More specifically, Atlassian said that it's doing well, but is choosing to adapt to market conditions. "The bar for what 'great' looks like for software companies -- on growth, on profitability, on speed, on value creation -- has gone up," Atlassian CEO Mike Cannon-Brooks wrote in a press release related to the layoffs. TechCrunch reached out to Atlassian for more information regarding which types of roles were cut and what happens next. This news comes just a few weeks after a similar, albeit more drastic, statement was made by Block CEO Jack Dorsey. In February, the payments company announced it was cutting more than 4,000 employees, nearly half of its 10,000 employees at the time. Dorsey said the cuts were being driven by the fact that AI could automate a lot of the work these employees were doing and predicted that many other companies would come to the same conclusion. Several enterprise-focused VCs predicted to TechCrunch that 2026 would be the year that AI would start to take a meaningful toll on labor.

Atlassian to Reduce 1,600 Jobs in the Latest AI-Linked Cuts

Atlassian expects to incur about $230 million in expenses due to the cuts, which are part of a broader trend of AI-linked cuts in the software industry. Atlassian Corp. plans to cut 1,600 jobs or a 10th of its global workforce, joining rivals in slashing staffing to cope with the advent of AI and a broader post-Covid industry slowdown. Australian billionaire founder Mike Cannon-Brookes explained the reductions in a staff memoBloomberg Terminal, while also announcing his chief technology officer was leaving the Sydney-based company. The reductions are the latest AI-linked cuts in the software industry and beyond, as companies across the globe adapt to an era in which the technology can handle many of the tasks thus far performed by humans. Still, companies are also facing skepticism they are exploiting AI fears to dress up old-fashioned cost-cutting as technological futurism. "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," Cannon-Brookes said. "It does." Get the Tech Newsletter bundle. Get the Tech Newsletter bundle. Get the Tech Newsletter bundle. Bloomberg's subscriber-only tech newsletters, and full access to all the articles they feature. Bloomberg's subscriber-only tech newsletters, and full access to all the articles they feature. Bloomberg's subscriber-only tech newsletters, and full access to all the articles they feature. Bloomberg may send me offers and promotions. Plus Signed UpPlus Sign UpPlus Sign Up By submitting my information, I agree to the Privacy Policy and Terms of Service. The topic of "AI-washing" has transfixed Silicon Valley players in recent months, in the wake of layoffs from Jack Dorsey's Block Inc. as well as Oracle Corp. Many tech companies hired aggressively during the pandemic, when online and digital activity boomed and many firms struggled to keep pace with that demand. At the same time, concerns are growing that AI will reduce a reliance on external software tools, eroding the lucrative business of enterprise IT services. While AI hasn't yet translated into clear productivity gains, many companies are seeking ways to do more with less. What Bloomberg Intelligence Says: Atlassian's 10% head-count reduction reinforces our caution that AI-led disruption will pressure traditional seat growth and force SaaS companies to defend margins as revenue shifts. As AI inferencing-driven revenue grows, we anticipate lower gross margin on incremental sales. The CTO's departure adds to executive risk amid leadership transitions over the past year. -Sunil Rajgopal, analyst Click hereBloomberg Terminal for research Cannon-Brookes' rationale was reminiscent of one given by Dorsey's Block, which pointed to AI last month when moving to fire about 40% of its staff. Oracle, too, has said that AI is allowing the company to make some software development teams smaller. In Australia, WiseTech Global Ltd. last month announced plans to ax almost 30% of staff within two years and said AI-fueled savings will ultimately cut through the entire company. Commonwealth Bank of Australia said it is cutting around 300 jobs as it rethinks how to develop its workforce in the AI age. Bloomberg Australia Inside the Cocaine Economy Arrow Right 18:51 Listen and follow The Bloomberg Australia Podcast on Apple, Spotify, on YouTube, or wherever you get your podcasts. Atlassian, the designer of office tools such as Trello, has seen its share value plummet more than 60% since Cannon-Brookes took full control of the company in 2024. The billionaire has talked openly about his efforts to pivot toward AI, calling the technology "one of the best things that's ever happened" to Atlassian -- even as investors globally pummeled shares in software firms vulnerable to AI advancements. Atlassian expects to incur about $230 million in expenses such as severance costs due to the cuts. The company's stock rose about 1.5% in extended trading after the layoffs were announced. "The bar for what 'great' looks like for software companies -- on growth, on profitability, on speed, on value creation -- has gone up," Cannon-Brookes said in the memo.

Atlassian to shed ten percent of staff, because AI

Company is 'reshaping our skill mix' amid long share price slide and SaaSpocalypse whispers Australian collaborationware company Atlassian has announced it will shed ten percent of staff - around 1,600 people. "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. It does," wrote CEO Mike Cannon-Brookes. "This is primarily about adaptation. We are reshaping our skill mix and changing how we work to build for the future." The CEO said Atlassian decided on the job cuts "to self-fund further investment in AI and enterprise sales, while strengthening our financial profile" and because the company is "changing the way we work and reorganising around our System of Work to move faster." Market pressures also influenced the decision. "The bar for what 'great' looks like for software companies - on growth, on profitability, on speed, on value creation - has gone up," Cannon-Brookes wrote. Atlassian has done poorly at value creation in recent years: The company's market capitalization peaked around $112 billion in 2021, but fell to around $30 billion in early 2023. A rally in February 2025 faded and the company's stock ended Wednesday trading at around $75 apiece, giving it a market value just north of $20 billion - then popped slightly to $78 in after-hours trading following Cannon-Brookes' announcement. But even those gains left the stock short of the $81 per share buyers were willing to pay earlier this week. The company has also prioritized re-investing profits, meaning it rarely records profits using the GAAP accounting system. Those numbers have seen pundits include Atlassian in the list of companies felt to be threatened by the "SaaSpocalypse" - the theoretical imminent collapse of SaaS companies due to organizations replacing them with vibe-coded tools. Cannon-Brookes put a different spin on the company's position. "We have momentum," he wrote. "We are executing incredibly well across our AI, Enterprise and System of Work transformations," and pointed to over 25 percent growth in revenue from cloud products, 40 percent-plus growth in remaining performance obligations, securing 600 customers who spend over $1 million a year, and winning more than five million users for the company's new "Rovo" AI suite. The CEO also described the layoffs as necessary to adapt to market conditions. "We've navigated - and thrived through - multiple technology shifts. Multiple market cycles. And we will again," he wrote. "This will require continual adaptation. Decisiveness. And making hard decisions to set Atlassian up strongly for the long term." One of Atlassian's company values is "Build with heart and balance," and Cannon-Brookes said these layoffs express those words. "Decisions require heart (humanity, empathy, passion), and balance (pragmatism, trade-offs, decisiveness)," he wrote. "In this moment, we are balancing making the right (hard) decision for Atlassian." In a video message, the CEO told departing staff "I am deeply sorry for the disruption this creates in your life." That disruption was likely sudden and surprising, as Atlassian sent every worker an email informing them of their fate within 20 minutes of the CEO's announcement. The company is being generous to departing staff, paying 16 weeks of wages plus another week for each year of service, plus bonuses on a pro-rata basis. Workers who have booked parental leave will be paid for it in advance. Every departing worker will receive a $1,000 "technology stipend" after they hand in company laptops. But the end will be swift, with departing employees losing access to Slack within 12 hours. The company also advised it will restrict access to internal Confluence resources "in service of protecting our customers' data." In his video message, Cannon-Brookes urged to staff to "be kind to yourselves and others [and] check in on your teammates," and told departing workers you are an important part of the Atlassian story."

Atlassian to cut roughly 10% jobs in pivot to AI

March 11 (Reuters) - Atlassian (TEAM.O), opens new tab said on Wednesday it would lay off around 10% of its workforce, or 1,600 employees, to push into artificial intelligence and enterprise sales. Shares of the enterprise software company rose nearly 2% in extended trading after Atlassian said it plans to "rebalance" its resources to focus on the "future of teamwork in the AI era." The company said the majority of impacted employees are ⁠in North America, amounting to 40%, followed by 30% in Australia and 16% in India. It expects to incur about $225 million to $236 million in charges related to the layoffs and office space reductions. "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. It does," CEO Mike Cannon-Brookes said in a memo to employees. The move comes as investors increasingly scrutinize software firms amid fears that advances in AI could disrupt traditional software business models, though some analysts say the sector-wide selloff may be an overreaction. Top executives at the World ⁠Economic Forum's annual meeting in January had said that while jobs would disappear, new ones would spring up, with two telling Reuters that AI would be used as an excuse by companies that were already planning layoffs. Atlassian, whose shares were down around 33% last year, derives a majority of its revenue from its collaboration tools, including Jira software for ⁠planning and project management and Confluence for content creation. "Software companies such as Atlassian have an opportunity to make their business more efficient by adopting AI tools, especially within their product development. By reorganizing that way they can reduce the resources ⁠necessary to deliver their current business and grow more profitably," said D.A. Davidson analyst Gil Luria. The company said Rajeev Rajan will step down as chief technology officer, effective March 31. Atlassian expects the restructuring plan ⁠to be substantially complete by the end of the fourth quarter. It expects a smaller number of job cuts across Europe, the Middle East, Africa, Japan and the Philippines. Reporting by Jaspreet Singh in Bengaluru; Editing by Sahal Muhammed and Alan Barona Our Standards: The Thomson Reuters Trust Principles., opens new tab

Atlassian slashes 10% of workforce to 'self-fund' investments in AI and enterprise sales

Atlassian said on Wednesday that it's eliminating 10% of its workforce, or about 1,600 jobs, as the company restructures following a plunge in its stock price driven by developments in artificial intelligence. "We are doing this to self-fund further investment in AI and enterprise sales, while strengthening our financial profile," CEO Mike Cannon-Brookes said in a blog post. He said employees would be notified of their status by email. Atlassian has lost more than half its value this year alongside a broader selloff in software stocks.

Atlassian to cut 10pc of its workforce and embrace AI

Atlassian CEO and co-founder Mike Cannon-Brookes. Image: Atlassian The Australian-founded collaboration software provider wants to become "an AI-first company". Collaboration software provider Atlassian is to cut around 1,600 roles, amounting to 10pc of its workforce, its CEO and co-founder Mike Cannon-Brookes announced in a written blogpost yesterday (11 March). Cannon-Brookes said the layoffs were necessary to "self-fund further investment in AI and enterprise sales, while strengthening our financial profile", with an aim to change the way the Australian-founded company works and reorganise to move faster. He said that although Atlassian fundamentally believes that people and AI create the best outcomes, and its approach is not for AI to replace people, "it would be disingenuous to pretend AI doesn't change the mix of skills" needed or "the number of roles required in certain areas". "This is primarily about adaptation. We are reshaping our skill mix and changing how we work to build for the future," he said. Cannon-Brookes said "a thoughtful and incredibly thorough approach to determining impacted roles" was used to make structural and organisational changes, with a focus on retaining employees with the necessary skills for "an AI-first company" - namely "strong performers, graduates", and those "with transferable skills". All Atlassian employees were due to receive an email update on their individual and regional statuses within 20 minutes of the post going live. The CEO's blogpost, which also included a video message to his staff, detailed the compensation arrangements for impacted employees, which are subject to local laws and consultation requirements. Syndey-headquartered Atlassian was founded in 2002 by Cannon-Brookes and Scott Farquar, who each have a current net worth of around $7bn, according to Forbes. Its products include collaboration, communication and project management applications such as Trello, Jira, Confluence and Bamboo, and it has employees across 14 countries. In a quarterly financial letter to shareholders last month, Cannon-Brookes said Atlassian was "building a bloody great business" and "had a fantastic Q2", and that he was "convinced AI is great for Atlassian". Headline figures from the letter noted that the company has 350,000 customers and revenue of $1.6bn, up 23pc year-on-year. However, its shares prices have been affected by the software slump brought on by the emerging threat of AI tools, as noted by Forbes. So far this year, companies such as Amazon and Block have made significant layoffs in tandem with plans to spend more on AI. Lat September, Atlassian announced plans to acquire productivity tech start-up DX and The Browser Company. Just over three years ago, the company cut 500 roles in a reorganisation move. Don't miss out on the knowledge you need to succeed. Sign up for the Daily Brief, Silicon Republic's digest of need-to-know sci-tech news.

Atlassian to cut roughly 10% jobs in pivot to AI affecting 16% of Indian employees

The company said 40% of affected employees are in North America, followed by 30% in Australia and 16% in India. It expects to incur about $225 million to $236 million in charges related to the layoffs and office space reductions. Atlassian said on Wednesday it would lay off around 10% of its workforce, or 1,600 employees, to ⁠push into ⁠artificial intelligence and enterprise sales. Shares of the enterprise software company rose nearly 2% in extended trading after Atlassian said it plans to "rebalance" its resources to focus on the "future of teamwork in the AI era." The company said the majority of impacted employees are in North America, amounting to 40%, followed by 30% in Australia and 16% in India. It expects to incur about $225 million to $236 million in charges related to the layoffs and office space reductions. "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. It ⁠does," CEO Mike Cannon-Brookes said in a memo to employees. The move comes as investors increasingly scrutinize software firms amid fears that advances in AI could disrupt traditional software business models, though some analysts say the sector-wide selloff may be an overreaction. Top executives at the World Economic Forum's annual meeting in January had said that while jobs would disappear, new ones would spring up, with two telling Reuters that AI would be used as an excuse by companies that were already planning layoffs. Atlassian, whose shares were down around 33% last year, derives a majority of its revenue from its collaboration tools, including Jira software for planning and project management and Confluence for content creation. "Software companies such ⁠as Atlassian have an opportunity to make their business more efficient by adopting AI tools, especially within their product development. By reorganizing that way they can reduce the resources necessary to deliver their current business and grow more profitably," said D A Davidson analyst Gil Luria. The company said Rajeev Rajan will step down as chief technology officer, effective March 31. Atlassian expects the restructuring plan to be substantially complete by the end of the fourth quarter. It expects a smaller number of job cuts across Europe, the Middle East, Africa, Japan and the Philippines.

Atlassian Cuts 10% Of Global Workforce Amid AI Shift, Cites Change In 'Number Of Roles Required' - Atlassian (NASDAQ:TEAM)

Atlassian Corp (NASDAQ:TEAM) is cutting roughly 10% of its global workforce, citing the growing influence of artificial intelligence on its business strategy and operations. Atlassian Lays Off 1,600 Employees Over AI Restructuring On Wednesday, the Australian-American software company, known for products like Jira, Trello and Confluence, announced it will eliminate about 1,600 jobs worldwide, reported Business Insider. The cuts are part of a restructuring aimed at focusing on AI and enterprise growth. About 30% of the layoffs are in Australia. In a message to employees, CEO Mike Cannon-Brookes acknowledged the impact of AI on the company's staffing needs. "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. It does," Cannon-Brookes wrote. He added, "I believe this is the right decision for Atlassian. But that doesn't mean it's easy. Far from it." Cannon-Brookes continued, "I know this has a huge impact on each of you, and it weighs heavily on me and Atlassian today." The restructuring also affects senior leadership. Chief Technology Officer Rajeev Rajan will step down on March 31 after nearly four years in the role. Atlassian plans to offer affected employees a minimum 16-week severance package, extended healthcare, and prorated bonuses. The company's aggressive AI push includes acquisitions of The Browser Company, maker of the Arc and Dia browsers, and developer intelligence platform DX, which will be integrated into products like Jira and Bitbucket. AI Impact On Jobs And Software Transformation Earlier this week, Sen. Mark Kelly (D-Ariz.) raised concerns about AI's effect on American workers and unveiled his AI for America roadmap to protect jobs and ensure corporations contribute fairly. He said big companies were signaling plans to shrink their workforces and emphasized solutions to put workers first while minimizing job losses and supporting retraining. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo courtesy: Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Why is Atlassian going to lay off 10% workforce, and will software provider's 1,600 jobs cut announcement push company's shares upwards or downwards?

Why is Atlassian going to lay off 10% workforce, and will software provider's 1,600 jobs cut announcement push company's shares upwards or downwards? The software provider announced a plan to reduce its workforce by about 10%. The decision will impact about 1,600 employees. The move is part of a restructuring plan as the company shifts focus toward artificial intelligence and enterprise sales. The company shared the information in a regulatory filing. Atlassian said it wants to rebalance resources to prepare for what it calls the future of teamwork in the AI era. The plan also includes changes to office space and internal operations. The announcement led to movement in the company's shares during extended trading. Atlassian said the layoffs are part of a restructuring plan. The company plans to redirect resources toward artificial intelligence and enterprise sales. Around 1,600 roles will be cut as Atlassian shifts focus to AI tools and collaboration products. After the announcement, the company's shares rose more than 4% in extended trading. The reaction suggests investors responded to the company's plan to focus on technology linked to the AI era and teamwork tools. The company said the layoffs are meant to rebalance internal resources. Atlassian wants to focus on artificial intelligence development and enterprise sales. The company stated in a regulatory filing that it is preparing for the future of teamwork in the AI era. By reducing about 1,600 jobs and adjusting office space use, Atlassian plans to redirect spending and teams toward technology and services linked to artificial intelligence. After Atlassian announced the job cuts, its shares moved higher in extended trading. The stock rose more than 4% following the news. Investors often view restructuring plans as steps that can change spending and improve future operations. The market response showed that traders reacted to the company's decision to focus on artificial intelligence and enterprise sales. The company said the layoffs are linked to a change in strategy. Atlassian plans to focus more on artificial intelligence tools and enterprise customers. The company explained that the decision will help it direct resources toward areas that support the future of teamwork. Artificial intelligence is becoming a central part of many software products. Atlassian said it wants to position its services in this growing segment. By cutting about 1,600 jobs, the company plans to redirect spending and talent to areas linked to AI development and enterprise sales growth. The restructuring plan will also bring financial costs for the company. Atlassian said it expects total pre-tax charges between $225 million and $236 million. These charges will come from employee layoffs and reductions in office space. The company did not provide detailed information about which teams will be affected. However, it confirmed that the layoffs form part of the larger restructuring effort. The charges are expected to cover severance payments and expenses related to reducing office operations. After the announcement, the company's shares moved higher in extended trading. The stock rose more than 4% after the news became public. Investors often watch restructuring announcements closely because such moves can change company spending and future growth plans. In this case, the market reaction suggested that investors responded to the company's strategy shift toward artificial intelligence and enterprise sales. Atlassian said the restructuring aims to prepare the company for the future of teamwork in the AI era. The company believes that directing resources toward AI tools and enterprise customers will support its long-term direction. The company said the goal is to rebalance internal resources. According to the regulatory filing, Atlassian wants to focus on what it described as the future of teamwork in the AI era. This includes building tools that support collaboration and enterprise needs. The restructuring plan, job cuts, and office space reductions are part of this effort. The company said these steps will help it align operations with its technology priorities. Q1. Why is Atlassian going to lay off 10% workforce? Atlassian plans to cut about 1,600 jobs as part of a restructuring plan. The company wants to shift resources toward artificial intelligence development and enterprise sales. Q2. Will Atlassian shares rise or fall after the layoffs announcement? Atlassian shares rose more than 4% in extended trading after the layoffs announcement and restructuring plan became public.

Atlassian to lay off about 1,600 people in pivot to AI

March 11 (Reuters) - Software provider Atlassian said on Wednesday it would lay off around 10% of its workforce, or roughly 1,600 positions, as part of a restructuring plan to push into artificial intelligence and enterprise sales. Shares of the company rose more than 4% in extended trading. The company said it expects to incur total pre-tax charges between $225 million and $236 million related to the layoffs and office space reductions. The move comes as the company seeks to "rebalance" its resources to focus on the "future of teamwork in the AI era," according to a regulatory filing. (Reporting by Jaspreet Singh in Bengaluru; Editing by Sahal Muhammed)

Atlassian layoffs: Software giant cuts 1,600 jobs as it ramps up AI investments

Atlassian layoffs: A popular software company, Atlassian, has announced plans to cut around 10 per cent of its global workforce, which is a total of 1,600 employees. Headquartered in Australia, the company stated that the move, which affected roughly 1,600 employees, aims to improve the company's financial position and accelerate AI investments. This comes after an internal message by Atlassian co-founder Mike Cannon-Brookes was shared with employees. Cannon-Brookes acknowledged the difficulty of the decision but stated that the restructuring was necessary for the company's future. As per the reports, most of the job cuts will impact technical roles. The officials reportedly stated that more than 900 of the positions that were affected are in software research and development. For the unversed, the company has a big technical workforce, with over half of its 13,800 employees, as of last year, working in engineering and design roles. The report added that around 640 employees in North America are expected to be affected. Over 480 in Australia and nearly 250 in India are also affected. The remaining employees were working in other global locations, including Japan, the Philippines, Europe, the Middle East and Africa. Also read: India may roll out export-linked incentives for smartphone makers like Apple, Samsung As per the company, the shift is closely linked to the growing role of AI in software development. Cannon-Brookes said artificial intelligence is not meant to replace employees, but it is changing the type of skills companies need and as a result, the company plans to redirect resources towards AI tools. The affected employees will get a minimum severance package that includes 16 weeks of salary and extended health benefits and early prorated bonuses. It is also offering job transition support and optional one-on-one meetings with HR. The company is also going through leadership changes. Company's Chief Technology Officer Rajeev Rajan will be stepping down this month and his responsibilities will be divided between senior executives Taroon Mandhana and Vikram Rao, whom the company described as the next generation of AI-focused leadership. The layoff comes at a time when the company has recorded $1.6 billion in the final quarter of 2025, which is largely driven by subscriptions to software tools like Jira, Confluence and Trello.