Atlassian announced it is eliminating roughly 1,600 positions, equivalent to 10% of its global headcount, in what the Australian software group is framing as a structural shift to compete in the AI era.
More than 900 of the affected roles are in software research and development, the company said, a significant concentration given that engineering and design account for more than half of Atlassian's 13,813 full-time employees as of June 2025. The company's chief technology officer is also departing as part of the restructuring.
Atlassian said the cuts are intended to "self-fund" accelerated investment in artificial intelligence capabilities and an expanded push into enterprise sales, according to CNBC. The framing mirrors moves by other technology companies that have justified recent headcount reductions by pointing to AI-driven productivity gains or the need to reallocate capital toward automation.
The layoffs drew an immediate reaction from affected staff. Australian media outlet SMH reported employees describing "zero visibility" over the process, while The Guardian characterised the announcement as a "devastating blow" to those let go.
Atlassian, co-founded by billionaires Mike Cannon-Brookes and Scott Farquhar, makes workplace collaboration and project management software including Jira and Confluence. The company has a market capitalisation of roughly $50bn and is listed on Nasdaq.
