Atlassian Retains Graduates Amid Layoffs

Atlassian, an Australian software company, announced on Wednesday, March 12, 2026, that it is laying off 1,600 employees, approximately 10% of its global workforce, to fund artificial intelligence (AI) initiatives. Despite these cuts, CEO Mike Cannon-Brookes stated the company would prioritize retaining high performers, employees with transferable skills, and recent graduates.

The decision to retain graduates contrasts with broader industry trends where entry-level workers are often disproportionately affected by AI integration. Studies, including one by Stanford researchers, indicate that early-career workers (aged 22-25) in AI-exposed fields experienced a 16% relative employment decline. Some industry leaders, such as Anthropic CEO Dario Amodei, predict AI could eliminate up to half of entry-level white-collar jobs within 1 to 5 years.

Atlassian's CEO previously indicated a strategy to hire more new graduates, citing their potential to bring fresh perspectives to software development. The company hired 95 new graduates in February 2025 and plans to onboard 108 in February 2026. This retention strategy suggests a belief in graduates' adaptability to AI-first environments or their cost-effectiveness.