March 13, 2026 Atlassian will cut about 1,600 jobs as the company restructures to increase investment in artificial intelligence and enterprise sales. That is roughly 10 per cent of the company’s workforce. The move also includes replacing the company’s chief technology officer as Atlassian reshapes its technical leadership around AI development.
The layoffs affect employees across multiple regions, including about 640 in North America, 480 in Australia and 250 in India, with additional roles in Japan, the Philippines, Europe, the Middle East and Africa. More than 900 of the eliminated roles were in software research and development.
In a message to employees, Atlassian co-founder Mike Cannon-Brookes said the decision was difficult but necessary as the company adjusts to changes in how software is built and delivered.
“Our approach is not ‘AI replaces people’. But it would be disingenuous to pretend AI doesn’t change the mix of skills we need or the number of roles required in certain areas,” Cannon-Brookes wrote.
The restructuring comes as Atlassian faces pressure from investors concerned that advances in AI could reduce demand for traditional developer productivity tools. The company’s market value has fallen sharply since the start of 2026.
Atlassian said the changes will help the company strengthen its financial position and fund additional investment in artificial intelligence capabilities. Cannon-Brookes told employees the goal is to “self-fund further investment in AI and enterprise sales.”
The restructuring will also involve leadership changes. Chief technology officer Rajeev Rajan will step down at the end of March and be replaced jointly by Taroon Mandhana and Vikram Rao, whom the company described as “next generation AI talent.”
Atlassian expects the layoffs and related restructuring costs to total up to US$174 million, while additional office reductions may add at least US$62 million in exit charges. Most of those costs are expected to be recognized by the end of March.
The company generated US$1.6 billion in revenue during the final quarter of 2025, driven by subscriptions to collaboration and workflow tools including Jira, Confluence and Trello. Atlassian has remained unprofitable, however, reporting a net loss of US$42 million in that quarter.
The cuts follow similar workforce reductions at other technology companies adjusting to AI-driven changes in software development. Firms including Block and WiseTech have also announced layoffs tied in part to shifts in productivity and organisational structure linked to AI adoption.
