Software giant Atlassian has announced it is laying off about 10% of its workforce, or 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 of the 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. The layoffs will affect about 640 employees in North America, 480 in Australia, 250 in India, and the remainder 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 it was difficult. He suggested that AI use had changed the skills and roles the company needed, allowing a restructure to strengthen financial standing and “self-fund further investment in AI and enterprise sales”. He added: “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.”
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 described the layoffs as 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 upon returning their corporate laptop.
Atlassian reported that redundancy and related costs would total up to $174m (A$246m), with office space reductions incurring exit charges of at least $62m (A$87m). The company, which has not been profitable since 2017, recorded a net loss of US$42m in the last quarter of 2025 despite revenue of US$1.6bn.
