Atlassian says it’s laying off 10% of its global workforce and attributes the cut to the ‘AI era’

• Atlassian announced plans to cut 1,600 jobs to focus on AI and enterprise growth initiatives.
• CEO Mike Cannon-Brookes cited AI’s impact on workforce needs as a reason for the layoffs.
• 30% of the job cuts impact Atlassian employees based in Australia, reflecting global changes.

Another tech company is making job cuts and attributing them to AI.

Atlassian, an Australian-American proprietary software company, said on Wednesday that it is cutting about 1,600 jobs, roughly 10% of its global workforce, as the company restructures to focus on AI and enterprise growth.

In a filing with the US Securities and Exchange Commission, the Sydney-headquartered company said the layoffs are part of a broader effort to reposition the business for what CEO Mike Cannon-Brookes described as the “AI era.” About 30% of the affected roles are based in Australia.

In a message to employees, Cannon-Brookes acknowledged the growing influence of AI on the company’s workforce needs.

“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. It does,” Cannon-Brookes wrote.

“I believe this is the right decision for Atlassian. But that doesn’t mean it’s easy. Far from it,” Cannon-Brookes added. “I know this has a huge impact on each of you, and it weighs heavily on me and Atlassian today.”

This is a developing story. Check back for updates.