Australian productivity software firm Atlassian conducted layoffs to allocate greater resources towards artificial intelligence.
On March 11, Atlassian revealed plans to reduce its workforce by 10%, impacting approximately 1,600 employees. The company stated this move is intended to boost investment in AI and enterprise sales, as well as to improve its financial position.
Specifically, Atlassian indicated its strong performance but emphasized a strategic decision to adjust to current market dynamics.
In a press release concerning the layoffs, Atlassian CEO Mike Cannon-Brookes noted, “The standard for what constitutes ‘great’ for software companies—in terms of growth, profitability, speed, and value creation—has become higher.”
TechCrunch contacted Atlassian seeking additional details about the specific roles affected by the cuts and future plans. Atlassian chose not to provide further comments beyond its initial statement.
This announcement follows a few weeks after a comparable, though more extensive, declaration by Block CEO Jack Dorsey. In February, the payments firm disclosed it was reducing its workforce by over 4,000 employees, which constituted almost half of its 10,000 staff at that time.
Dorsey attributed these reductions to the potential for AI to automate a significant portion of the work performed by these employees, forecasting that numerous other companies would reach similar conclusions.
Multiple venture capitalists specializing in enterprise technology informed TechCrunch that they anticipated 2026 would mark the beginning of AI significantly impacting the labor market.
To date, their forecast has proven accurate.