Australian productivity software company Atlassian has announced layoffs as it plans to allocate more resources to AI. On March 11, Atlassian revealed it will reduce its workforce by 10%, impacting around 1,600 employees. The company stated this move is intended to enhance its focus on AI and enterprise sales while bolstering its financial position.
Atlassian clarified that while the company is performing well, it’s opting to adjust to evolving market conditions. CEO Mike Cannon-Brookes commented on the changing standards for software companies, emphasizing the need for higher growth, profitability, speed, and value creation.
TechCrunch sought additional details from Atlassian about the specific roles affected and the company’s future plans, but Atlassian did not provide further comments.
This development follows a similar decision by Block CEO Jack Dorsey, who, in February, announced over 4,000 job cuts, almost half of the company’s workforce. Dorsey attributed the cuts to AI’s potential to automate many tasks previously handled by employees and suggested other companies might follow suit.
Enterprise-focused venture capitalists had earlier predicted to TechCrunch that 2026 would mark a significant impact of AI on labor, a forecast that is now proving accurate.