Atlassian to cut 1,600 jobs amid AI push
Make us a preferred source
Make us a preferred source on Google
The news: Nasdaq-listed Australian software giant Atlassian has announced it will cut 10% of its workforce, or about 1,600 jobs, as part of its AI and enterprise sales push. It includes the departure of chief technology officer Rajeev Rajan, effective 31 March.
In a regulatory filing, CEO Mike Cannon-Brookes said AI has changed “the mix of skills we need or the number of roles required in certain areas”.
“This is primarily about adaptation. We are reshaping our skill mix and changing how we work to build for the future,” Cannon-Brookes said.
The numbers: At 8:45am AEDT, Atlassian shares had lifted 2.1% to USD77 ($107.71) each in after-hours trading.
The company expects the layoffs and office space reductions will result in a total pre-tax charge of between USD225 million and USD236 million.
An Atlassian spokesperson confirmed that 30% of the jobs lost will be in Australia, or about 480 jobs.
The context: Affected staff will receive a minimum 16-week separation package, with an additional week for each year of service. Bonuses for FY26 will be brought forward pro rata and USD1,000 will be paid when the company-issued laptop is returned.
Healthcare plans will be extended for six months for eligible employees and families. Support will also be provided to find internal opportunities “as well as outplacement services and individual support for those on Visas, and future-dated paid parental leave paid out in full”.
Rajan has spent nearly four years as Atlassian’s chief technology officer. He will be replaced through “the promotion of next generation AI talent” CTO teamwork Taroon Mandhana and CTO enterprise and chief trust officer Vikram Rao.
Mandhana is currently head of engineering for AI and products while Rao is currently chief trust officer.
What they said: “I’m sharing some hard news today. I have made the incredibly difficult decision to reduce the size of our team by ~10% (or ~1,600 employees),” Cannon-Brookes said in the filing.
“Every Atlassian will receive an email within the next 20 minutes letting you know if you are impacted, or if we’re starting consultation in your region,” he added.
The sources: SEC filing, Atlassian blog post
