Software giant Atlassian has announced it is laying off about 10% of its workforce, or roughly 1,600 positions, and replacing its chief technology officer as it restructures to invest further in artificial intelligence.
More than 900 affected positions were involved 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 in 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, according to the spokesperson.
The company’s co-founder, Mike Cannon-Brookes, told employees the move was “the right decision for Atlassian” in a note circulated late Wednesday, US time. “But that doesn’t mean it’s easy,” he said. “Far from it. I know this has a huge impact on each of you, and it weighs heavily on me and Atlassian today.”
Cannon-Brookes suggested that AI use had changed the skills and roles the company needed, allowing a restructure to strengthen the company’s financial standing and “self-fund further investment in AI and enterprise sales”. Addressing the question of whether AI had replaced the 1,600 sacked employees, he wrote: “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 to last until 19 March and final termination expected on 2 April. Paul Inglis, a director at Professionals Australia, said workers had been made redundant without being consulted or given any sign a restructure would affect their jobs.
