Aussie-born tech Mogul Atlassian will cut 10% of its global workforce, removing about 1,600 roles as the company says artificial intelligence is changing the number and type of employees it needs.
The move was revealed to investors after the Nasdaq close, with Mike Cannon-Brookes, co-founder and chief executive officer, saying the cuts are intended to free capital for deeper AI investment and enterprise growth.
Around 30% of the redundancies, or roughly 480 roles, will come from Australia, making local operations one of the hardest hit parts of the restructure.
In a farewell note to staff, Cannon-Brookes said the decision was difficult but necessary.
“I believe this is the right decision for Atlassian. But that doesn’t mean it’s easy. Far from it.
“We are doing this to self-fund further investment in AI and enterprise sales, while strengthening our financial profile. We’re also changing the way we work and reorganising around our system of work to move faster.”
Cannon-Brookes said the cuts reflect structural change rather than a simple cost-saving measure.
“We fundamentally believe people and AI create the best outcomes. Our approach is not ‘AI replaces people.’ But 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.
“This is primarily about adaptation. We are reshaping our skill mix and changing how we work to build for the future.”
The company has been building its own AI platform, Rovo, while also making large acquisitions, including DX and The Browser Company.
Chief technology officer Rajeev Rajan is among those departing.
Atlassian leadership reshuffle to follow
Rajan will be replaced through two internal promotions:
Taroon Mandhana becomes the Chief Technology Officer of Teamwork
Vikram Rao becomes Chief Technology Officer of the enterprise and Chief Trust Officer
Atlassian described both as “next-generation AI talent”.
The cuts come during a difficult market period for the company, with Atlassian shares down sharply amid wider software-sector selloffs tied to fears that AI products from OpenAI and Anthropic could replace parts of traditional SaaS software demand.
Atlassian said the restructure will cost between US$225 million and US$236 million.
Departing staff will receive:
- minimum 16 weeks pay
- one extra week per year of service
- pro-rata 2026 bonuses
- US$1,000 after returning company devices
Despite the cuts, Cannon-Brookes said the company still sees momentum driven by cloud growth and 5 million monthly active users on Rovo.
“But, things have changed. The bar for what ‘great’ looks like for software companies – on growth, on profitability, on speed, on value creation – has gone up.
“We are choosing to adapt. Thoughtfully, decisively and quickly. To drive durable, profitable growth.”
Top Image: Mike Cannon-Brookes. Instagram