Atlassian Cuts 1,600 Jobs for AI Push

Atlassian, the Australian software company, announced on Wednesday, March 12, 2026, the layoff of approximately 1,600 employees, representing 10% of its global workforce. This restructuring aims to reallocate resources towards artificial intelligence (AI) development and enterprise sales. The company expects to incur pre-tax charges between US$225 million and US$236 million related to these layoffs and office space reductions.

The job cuts affect 640 employees in North America, 480 in Australia, 250 in India, and others across Japan, the Philippines, Europe, the Middle East, and Africa. Atlassian's co-founder, Mike Cannon-Brookes, stated that while AI is not directly replacing these roles, it necessitates a shift in required skills and staffing levels. This move follows a period where Atlassian's market value declined by over 50% since early 2026, amid investor concerns about AI's potential impact on its services.

Affected employees will receive a minimum of 16 weeks' pay, extended healthcare, pro-rata bonuses, and a US$1,000 technology payment. This action by Atlassian aligns with similar workforce reductions by other tech firms, including Block and WiseTech, which have also cited AI-driven productivity changes and market pressures as factors in their recent layoffs.