Australian software giant Atlassian is cutting around 10 per cent of its global workforce as it pivots toward AI and enterprise sales, Reuters reports. Around 30 per cent of those affected are based in Australia.
Atlassian, the Australian enterprise software company behind project management tools Jira and Confluence, is cutting around 10 per cent of its global workforce as it shifts resources toward artificial intelligence and enterprise sales, according to a report by Reuters.
The cuts amount to approximately 1,600 employees, with the majority of those affected based in North America at around 40 per cent, followed by 30 per cent in Australia and 16 per cent in India, Reuters reported. A smaller number of reductions are also expected across Europe, the Middle East, Africa, Japan and the Philippines.
According to Reuters, Atlassian said it plans to rebalance its resources to focus on what it described as the future of teamwork in the AI era. The company expects to incur between $225 million and $236 million in charges related to the layoffs and office space reductions, with the restructuring expected to be substantially complete by the end of the fourth quarter.
In a memo to employees cited by Reuters, CEO Mike Cannon-Brookes addressed the role of AI in the decision directly. “Our approach is not ‘AI replaces people,'” Cannon-Brookes said, according to Reuters. He added that it would be disingenuous to pretend AI does not change the skills mix or the number of roles required in certain areas.
Reuters also reported that Atlassian’s chief technology officer Rajeev Rajan will step down effective 31 March 2026. The move comes as software companies face growing investor scrutiny over fears that advances in AI could disrupt traditional software business models, Reuters noted. Atlassian shares were down around 33 per cent last year but rose nearly 2 per cent in extended trading following the announcement, according to the report.
D.A. Davidson analyst Gil Luria told Reuters that software companies such as Atlassian have an opportunity to make their business more efficient by adopting AI tools, particularly within product development, allowing them to reduce resources and grow more profitably.
Source: Reuters. Dynamic Business has not independently verified the details of this report.
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