Atlassian Layoffs: Australian software giant Atlassian has announced plans to lay off nearly 10 percent of its global workforce—around 1,600 employees—as part of a major restructuring aimed at accelerating its push into artificial intelligence. The move comes as technology companies around the world increasingly reorganize their operations to adapt to rapid advances in AI-driven tools and automation.
The company, known for popular collaboration and project management software used by businesses globally, said the decision was necessary to strengthen its long-term strategy and expand investment in AI technologies. The restructuring will also include leadership changes within the company’s technology division.
According to details shared with The Guardian, the layoffs will affect employees across multiple regions. The largest share of job cuts will take place in North America, where roughly 640 workers are expected to lose their positions. Australia will see around 480 layoffs, while about 250 jobs will be cut in India. Additional reductions will be spread across other regions including Japan, the Philippines, Europe, West Asia, and Africa.
As of June 2025, Atlassian had approximately 13,813 full-time employees worldwide. More than half of them were working in software engineering and design roles, reflecting the company’s focus on building and maintaining digital collaboration tools.
Despite the layoffs, Atlassian CEO Mike Cannon-Brookes tried to reassure employees about the company’s future workforce strategy. In a message sent to staff on Wednesday, he outlined three key groups of employees that the company intends to retain as it restructures: strong performers, recent graduates, and workers who possess transferable skills that can be applied across multiple roles.
According to a report by Business Insider, Cannon-Brookes explained that the restructuring process was guided by internal principles and careful analysis to ensure the company maintains the talent needed to transition into an AI-first organization.
In his message, he wrote that the company had made structural changes while focusing on retaining employees who have the capabilities to help Atlassian succeed in the evolving technological landscape. These include top performers who consistently deliver results, graduates who represent the company’s future talent pipeline, and individuals with versatile skills that allow them to adapt to changing roles.
While prioritizing high-performing employees and adaptable workers may seem predictable, the company’s decision to specifically protect graduates is notable. Across the technology industry, there is growing concern that artificial intelligence could reduce opportunities for entry-level workers.
Recent research has suggested that younger professionals are already feeling the effects of technological disruption. A study conducted by researchers at Stanford University found that employees aged between 22 and 25 working in industries heavily exposed to AI experienced a relative employment decline of about 16 percent.
Meanwhile, Dario Amodei, the CEO of AI company Anthropic, has warned that artificial intelligence could eliminate up to half of entry-level white-collar jobs within the next one to five years if the technology continues to develop rapidly.
Interestingly, Atlassian had recently signaled a stronger focus on hiring fresh graduates compared with previous years. The company said earlier that it was increasing recruitment in order to expand its research, development, and engineering capabilities—areas considered essential for building advanced AI tools.
Cannon-Brookes emphasized that the company’s latest restructuring is driven by shifting technological priorities rather than a simple replacement of human workers with machines. According to him, the goal is to make Atlassian more financially resilient while enabling the company to invest more aggressively in artificial intelligence and enterprise sales.
He acknowledged that AI is transforming the types of skills businesses need but rejected the idea that the technology is directly replacing employees. Instead, he suggested that the rise of AI is changing the balance of roles required in modern organizations.
“Our approach is not ‘AI replaces people’,” Cannon-Brookes said in his internal message. However, he added that it would be unrealistic to pretend that AI does not influence the mix of skills needed within the company or the number of positions required in certain departments.
As technology companies continue to embrace artificial intelligence, Atlassian’s decision highlights the broader transformation taking place across the global tech industry—one where businesses are reshaping their workforce to keep pace with rapidly evolving digital innovation.
