Atlassian says it's laying off 10% of its global workforce and attributes the cut to the 'AI era'

• Atlassian announced plans to cut 1,600 jobs to focus on AI and enterprise growth initiatives.
• CEO Mike Cannon-Brookes cited AI's impact on workforce needs as a reason for the layoffs.
• 30% of the job cuts impact Atlassian employees based in Australia, reflecting global changes.

Another tech company is making job cuts and attributing them to AI.

Atlassian, an Australian-American proprietary software company, said on Wednesday that it is cutting about 1,600 jobs, roughly 10% of its global workforce, as the company restructures to focus on AI and enterprise growth.

In a filing with the US Securities and Exchange Commission, the Sydney-headquartered company said the layoffs are part of a broader effort to reposition the business for what CEO Mike Cannon-Brookes described as the "AI era." About 30% of the affected roles are based in Australia.

In a message to employees, Cannon-Brookes acknowledged the growing influence of AI on the company's workforce needs.

"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. It does," Cannon-Brookes wrote.

"I believe this is the right decision for Atlassian. But that doesn't mean it's easy. Far from it," Cannon-Brookes added. "I know this has a huge impact on each of you, and it weighs heavily on me and Atlassian today."

Based on the SEC filing, affected employees will receive a minimum 16-week severance package, along with extended healthcare benefits and prorated bonuses.

The cuts follow an aggressive AI push by Atlassian, including deals to acquire The Browser Company, which makes the Arc and Dia browsers, and developer intelligence platform DX, which it plans to integrate into products such as Jira and Bitbucket.

Less than a month ago, Block, which owns financial services like CashApp and Afterpay, laid off nearly half of its workforce and also attributed the cut to advancements in AI. Prior to the staff cut, Block's stock had declined by around 35% since a small peak in October 2025.

The shake-up at Atlassian has not spared higher-level roles. Chief technology officer Rajeev Rajan will step down on March 31 after nearly four years in the role.

Atlassian shares have fallen around 64% over the past 12 months. According to the SEC filing, the restructuring is expected to cost Atlassian between $225 million and $236 million, mostly tied to severance payments and office space reductions.