Software company Atlassian has announced plans to cut about 10% of its global workforce, roughly 1,600 jobs. as it restructures operations and increases investment in artificial intelligence (AI), according to The Guardian.
More than 900 of the affected roles are in software research and development, according to a company spokesperson. Atlassian had around 13,813 full-time employees as of June 2025, with more than half working in engineering and design.
According to the news report, the layoffs will affect workers across several regions. Around 640 employees are based in North America, about 480 in Australia and roughly 250 in India. Other job losses will occur in Japan, the Philippines, Europe, the Middle East and Africa.
Leadership changes and AI focus
Atlassian co-founder Mike Cannon-Brookes told staff the decision was difficult but necessary for the company’s future.
“This is the right decision for Atlassian,” he said in a note to employees, adding that the changes would allow the company to strengthen its finances and invest more in AI and enterprise sales.
The restructuring will also bring leadership changes. Chief technology officer Rajeev Rajan will step down at the end of March. His role will be taken over jointly by Taroon Mandhana and Vikram Rao, whom the company described as “next-generation AI talent”.
Cannon-Brookes said the company was not replacing employees with AI directly, but acknowledged that the technology is changing the type of skills needed in the workforce.
Market pressure and financial challenges
Atlassian, founded by Mike Cannon-Brookes and Scott Farquhar, has seen its market value drop by more than half since the start of 2026 as investors worry that AI could disrupt its business model.
The company generates revenue from subscription-based software tools such as Jira, Confluence and Trello. It reported revenue of $1.6 billion in the final quarter of 2025, but has remained unprofitable, recording a $42 million net loss during the period.
Despite the layoffs, investors reacted positively to the restructuring plan, pushing Atlassian’s share price up about 4% in extended trading on the Nasdaq exchange.
The union Professionals Australia criticised the company for failing to consult staff before announcing the cuts.
Union director Paul Inglis said many workers were informed about the layoffs without prior warning.
“These are skilled professionals who helped build one of Australia’s most successful technology companies,” Inglis said, adding that employees deserved transparency and proper consultation.
Workers affected by the layoffs are expected to receive at least 16 weeks’ pay, extended healthcare benefits and a $1,000 technology payment once company laptops are returned.
The job cuts come as other technology firms also reduce staff while investing more heavily in AI. Financial technology company Block, which owns Afterpay, recently cut about 40% of its workforce, with co-founder Jack Dorsey citing productivity gains from AI. Meanwhile, Australian logistics software firm WiseTech Global has announced plans to cut around 2,000 jobs over the next two years.
Source – https://www.ndtv.com/world-news/atlassian-cuts-1-600-jobs-as-company-shifts-focus-to-ai-11204524