Atlassian layoffs: Software giant cuts 1,600 jobs as it ramps up AI investments

Atlassian layoffs: A popular software company, Atlassian, has announced plans to cut around 10 per cent of its global workforce, which is a total of 1,600 employees. Headquartered in Australia, the company stated that the move, which affected roughly 1,600 employees, aims to improve the company’s financial position and accelerate AI investments.

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This comes after an internal message by Atlassian co-founder Mike Cannon-Brookes was shared with employees. Cannon-Brookes acknowledged the difficulty of the decision but stated that the restructuring was necessary for the company’s future.

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As per the reports, most of the job cuts will impact technical roles. The officials reportedly stated that more than 900 of the positions that were affected are in software research and development. For the unversed, the company has a big technical workforce, with over half of its 13,800 employees, as of last year, working in engineering and design roles.

The report added that around 640 employees in North America are expected to be affected. Over 480 in Australia and nearly 250 in India are also affected. The remaining employees were working in other global locations, including Japan, the Philippines, Europe, the Middle East and Africa.

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As per the company, the shift is closely linked to the growing role of AI in software development. Cannon-Brookes said artificial intelligence is not meant to replace employees, but it is changing the type of skills companies need and as a result, the company plans to redirect resources towards AI tools.

The affected employees will get a minimum severance package that includes 16 weeks of salary and extended health benefits and early prorated bonuses. It is also offering job transition support and optional one-on-one meetings with HR.

The company is also going through leadership changes. Company’s Chief Technology Officer Rajeev Rajan will be stepping down this month and his responsibilities will be divided between senior executives Taroon Mandhana and Vikram Rao, whom the company described as the next generation of AI-focused leadership.

The layoff comes at a time when the company has recorded $1.6 billion in the final quarter of 2025, which is largely driven by subscriptions to software tools like Jira, Confluence and Trello.

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Ashish Singh

Ashish Singh is the Chief Copy Editor at Digit. He's been wrangling tech jargon since 2020 (Times Internet, Jagran English '22). When not policing commas, he's likely fueling his gadget habit with coffee, strategising his next virtual race, or plotting a road trip to test the latest in-car tech. He speaks fluent Geek. View Full Profile