Atlassian has announced it will cut 1,600 jobs – roughly 10% of its global workforce – as co-founder and CEO Mike Cannon-Brookes moves to restructure the business around AI and enterprise growth.
Key Takeaways
- Atlassian is cutting approximately 1,600 employees – around 10% of its global workforce.
- Chief technology officer Rajeev Rajan is among those departing.
- The company’s share price has fallen around 64% over the past 12 months.
- Cannon-Brookes acknowledged AI is changing the mix of skills and number of roles the company needs.
- Affected employees will receive a minimum 16-week separation package, plus six months of extended healthcare and a prorated FY26 bonus.
Key Background
In a post to staff, Cannon-Brookes was candid about AI’s role: “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.”
The company says it will go beyond severance requirements in every region, with a minimum 16-week separation package for those affected.
Crucial Quote
“I believe this is the right decision for Atlassian. But that doesn’t mean it’s easy. Far from it. I know this has a huge impact on each of you, and it weighs heavily on me and Atlassian today,” CEO Mike Cannon-Brookes said in a statement.
“We are doing this to self-fund further investment in AI and enterprise sales, while strengthening our financial profile. We’re also changing the way we work and reorganising around our system of work to move faster.”
This is a developing story. More to come.
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