Other tech companies are cutting jobs and blaming it on AI.
Atlassian, the Australian-American proprietary software company that makes products such as Jira, Trello and Confluence, announced Wednesday that it will cut approximately 1,600 jobs, or about 10% of its global workforce, as it reorganizes to focus on AI and company growth.
The Sydney-based company said in a filing with the U.S. Securities and Exchange Commission that the job cuts are part of a broader effort to reposition its business for what CEO Mike Cannon-Brookes has described as the “age of AI.” Approximately 30% of affected roles are based in Australia.
The latest job cuts follow at Block, which operates financial services such as Cash App and Afterpay. Brock has laid off nearly half its workforce and blames the layoffs on advances in AI.
In a message to employees, Cannon-Brookes acknowledged the growing influence of AI on the needs of the company’s workforce.
“It would be disingenuous to pretend that AI won’t change the mix of skills we need or the number of roles we need in a given field. In fact, it does,” Cannon-Brooks wrote.
“We believe this is the right decision for Atlassian, but that doesn’t mean it’s easy. It’s never easy,” Cannon-Brookes added. “I know this has had a huge impact on each of you, and it weighs heavily on me and Atlassian today.”
Atlassian was founded in 2002 by Cannon Brooks and Scott Farquhar, both of whom are on the Forbes list of Australia’s 50 richest people.
Based on the SEC filing, affected Atlassian employees will receive a minimum 16-week severance package, along with extended medical benefits and prorated bonuses.
The job cuts follow Atlassian’s aggressive AI push, including deals to acquire The Browser Company, which makes the Arc and Dia browsers, and DX, a developer intelligence platform that will be integrated into products such as Jira and Bitbucket.
Atlassian’s reorganization didn’t spare higher-level roles. Chief Technology Officer Rajeev Rajan will retire on March 31st after approximately four years in the role.
The company saw a surge in sales during the pandemic as remote work increased demand for more collaborative technology.
In the wake of the pandemic tech boom, Atlassian implemented a series of layoffs in 2023, affecting 5% of the company.
The company’s stock price has fallen about 64% over the past 12 months. The restructuring is expected to cost Atlassian between $225 million and $236 million, primarily due to severance and reduced office space, according to SEC filings.
The company’s shares rose more than 1% in after-hours trading.
