Atlassian has announced plans to cut around 1,600 jobs worldwide, roughly 10 percent of its workforce, as part of a major restructuring aimed at expanding its focus on artificial intelligence and enterprise sales. The decision comes as the Australian technology company reshapes its operations amid growing pressure from rapid developments in AI and changing market conditions.

The layoffs will affect employees across several regions. According to company figures, more than 900 of the impacted roles are in software research and development. Around 640 positions are expected to be eliminated in North America, about 480 in Australia and roughly 250 in India, with additional cuts planned in Japan, the Philippines, Europe, the Middle East and Africa. Atlassian reported having about 13,813 full-time employees as of June 2025, with more than half working in engineering and design.

Co-founder and chief executive Mike Cannon-Brookes said the move was difficult but necessary for the company’s long-term strategy. In a message to employees, he said the restructuring would help strengthen Atlassian’s financial position while enabling greater investment in AI technologies and expanding enterprise-focused services. Cannon-Brookes emphasized that the company was not replacing workers directly with AI, but acknowledged that the technology is reshaping the types of skills needed within the workforce.

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The restructuring will also bring leadership changes. Chief technology officer Rajeev Rajan will step down at the end of March. His responsibilities will be taken over jointly by Taroon Mandhana and Vikram Rao, who the company described as leaders with strong expertise in next-generation AI technologies.

Atlassian, founded by Cannon-Brookes and Scott Farquhar, has faced increasing market pressure in recent months. The company’s valuation has dropped by more than half since the start of 2026 as investors worry that advances in AI could disrupt traditional software development tools. Atlassian earns most of its revenue from subscription-based products such as Jira, Confluence and Trello. It reported $1.6 billion in revenue in the final quarter of 2025 but recorded a net loss of $42 million during the same period.

The layoffs have drawn criticism from the Australian labour group Professionals Australia, which said staff were not properly consulted before the announcement. Union director Paul Inglis said many employees learned of the cuts without prior warning, arguing that workers deserved greater transparency. Atlassian said affected employees will receive at least 16 weeks of pay, extended healthcare benefits and a $1,000 technology payment once company devices are returned, as the company moves forward with its AI-driven restructuring.

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