Software giant Atlassian has announced it will lay off approximately 1,600 employees, or 10% of its workforce, as part of a restructuring plan to invest more heavily in artificial intelligence and enterprise sales. The move also involves replacing the company's chief technology officer.
According to a company spokesperson, over 900 of the affected positions are in software research and development. The layoffs will impact 640 employees in North America, 480 in Australia, 250 in India, and the rest across Japan, the Philippines, Europe, the Middle East and Africa.
In a note to staff, co-founder Mike Cannon-Brookes described the decision as “the right decision for Atlassian” but acknowledged it was not easy. He stated that AI use had changed the skills and roles needed, allowing the company to strengthen its financial position 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, criticised the lack of consultation. Director Paul Inglis said workers had been made redundant without prior warning, describing the situation as a “devastating blow”. The union has requested an urgent meeting to discuss the introduction of AI and its link to the redundancies.
Affected employees will 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. The company expects redundancy and related costs to total up to $174 million, with office space reductions costing at least $62 million. Most costs will be incurred by the end of March and paid by the end of June.
