Trending Now - Atlassian Cuts 10% of Jobs as AI Drives Industry Shift
WHO:
Mike Cannon-Brookes, CEO of Atlassian, stated, "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."
A representative for Atlassian confirmed the hiring of 95 new graduates in February 2025 and plans for another 108 graduates to start in February 2026.
Atlassian was founded in 2002 by Mike Cannon-Brookes and Scott Farquhar.
Cannon-Brookes and Farquhar are both on Forbes' list of Australia's 50 richest people.
Atlassian, an Australian-American proprietary software company
Mike Cannon-Brookes, CEO of Atlassian
Rajeev Rajan, Chief Technology Officer of Atlassian
WHAT:
Atlassian's layoffs are part of a broader effort to reposition the business for what Cannon-Brookes described as the "AI era."
The company's stock rose more than 1% in after-hours trading following the announcement of layoffs.
The company plans to integrate the developer intelligence platform DX into products such as Jira and Bitbucket.
Atlassian's shares have fallen by around 64% over the past 12 months.
The restructuring is expected to cost Atlassian primarily due to severance payments and reductions in office space.
Atlassian is laying off about 1,600 jobs, which is roughly 10% of its global workforce.
The layoffs are part of a restructuring to focus on AI and enterprise growth.
Affected employees will receive a minimum 16-week severance package, extended healthcare benefits, and prorated bonuses.
The restructuring is expected to cost Atlassian between $225 million and $236 million.
WHERE:
The company is headquartered in Sydney, Australia.
About 30% of the affected roles are based in Australia.
WHEN:
Cannon-Brookes addressed employees in a four-minute video on March 11th, 2026.
Cannon-Brookes addressed employees in a four-minute video following the layoffs.
The announcement of layoffs was made on Wednesday, March 11th, 2026.
Rajeev Rajan will step down from his role on March 31st, 2026.
The company had a round of cuts in 2023 that affected 5% of the company.
WHY:
Analysts from William Blair noted that Atlassian has one of the highest levels of stock-based compensation in the industry, which is a factor in the company's decision to cut jobs.
Cannon-Brookes stated, "I believe this is the right decision for Atlassian. But that doesn't mean it's easy. Far from it."
The layoffs are attributed to the need to adapt to the "AI era" and the changing mix of skills required.
Cannon-Brookes stated, "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."
HOW:
The layoffs at Atlassian follow similar job cuts at Block, which laid off nearly half of its workforce, also attributing the cuts to advancements in AI.
The layoffs follow those at Block, which owns financial services such as Cash App and Afterpay, which laid off nearly half of its workforce.
The company is restructuring to reposition the business for advancements in AI.
Atlassian has made aggressive moves in AI, including acquiring The Browser Company and developer intelligence platform DX.
(UPDATED March 12, 2026 23:04 UTC)
In a recent address to employees, Atlassian CEO Mike Cannon-Brookes emphasized the need for a shift in skills and roles due to the impact of AI, announcing layoffs as part of a strategy to reposition the company for what he calls the "AI era." Despite these layoffs, which follow significant job cuts at Block, Atlassian confirmed the hiring of 95 new graduates last February and plans to bring on another 108 this coming February. Following the announcement, the company’s stock saw a rise of more than 1% in after-hours trading, reflecting market reactions to the changes.
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(UPDATED March 12, 2026 17:52 UTC)
Atlassian, founded in 2002 by Mike Cannon-Brookes and Scott Farquhar, is facing significant challenges as its shares have dropped about 64% over the past year. In a recent four-minute video to employees, Cannon-Brookes announced a restructuring plan that will integrate the developer intelligence platform DX into products like Jira and Bitbucket, but this will come at a cost due to severance payments and reduced office space. The layoffs at Atlassian follow a similar trend seen at Block, which recently cut nearly half of its workforce.
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(UPDATED March 12, 2026 17:21 UTC)
Atlassian, the Australian-American software company, has announced it will lay off about 1,600 employees, which is roughly 10% of its global workforce, as part of a restructuring effort to focus on AI and enterprise growth. Affected employees will receive a minimum of 16 weeks of severance, extended healthcare benefits, and prorated bonuses, while the restructuring is expected to cost the company between $225 million and $236 million. Additionally, Chief Technology Officer Rajeev Rajan will step down from his role at the end of March, as the company adapts to the evolving demands of the AI era.