Software giant Atlassian has announced it is laying off about 10% of its workforce, roughly 1,600 positions, as part of a restructuring plan to invest further in artificial intelligence and enterprise sales. The company is also replacing its chief technology officer.
More than 900 affected roles were in software research and development, a spokesperson said. Most of Atlassian’s employees work in software engineering and design, accounting for over 50% of its 13,813 full-time workforce as of June 2025. About 640 affected employees are in North America, 480 in Australia, and 250 in India, with the remainder spread across Japan, the Philippines, Europe, the Middle East and Africa.
Co-founder Mike Cannon-Brookes told employees the move was “the right decision for Atlassian” but acknowledged its difficulty. He suggested AI had changed the skills and roles needed, allowing a restructure to strengthen the company’s financial standing and “self-fund further investment in AI and enterprise sales”. He added: “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 has lost more than half its market value since the start of 2026 as traders fear AI could make its services obsolete. The company reported redundancies and related costs are expected to total up to $174m (A$246m), with office space reductions involving exit charges of at least $62m (A$87m).
The union representing Atlassian workers, Professionals Australia, said impacted employees were told on Thursday, with a consultation process until 19 March and final termination expected on 2 April. Director Paul Inglis called it a “devastating blow” and criticised the lack of consultation. Affected employees are expected to receive a minimum separation package of 16 weeks’ pay, extended healthcare, early pro rata bonuses, and a US$1,000 technology payment after returning their corporate laptop.
