Atlassian Cuts 1,600 Jobs in AI-Driven Workforce Reduction

Atlassian is restructuring its business, resulting in the layoff of approximately 1,600 employees – roughly 10% of its global workforce. The cuts impact over 900 roles in software research and development. The company plans to reinvest the savings into artificial intelligence and enterprise sales, aiming for sustained profitability. This move follows a broader trend of staffing reductions within the tech industry, influenced by the rise of AI and a post-Covid slowdown. Atlassian has experienced significant market decline in 2026, losing over 50% of its market value. The restructuring also includes a change in the role of its chief technology officer.