Atlassian to cut about 1,600 jobs as it shifts focus to AI

In short: Atlassian says it will lay off about 10% of its workforce, around 1,600 people, to redirect money and staff toward AI and selling to large companies.

What happened

Atlassian announced on March 12, 2026 that it is laying off approximately 10% of its employees. The company said this affects around 1,600 people.

The layoffs are part of a restructuring plan. Atlassian said it wants to move resources toward artificial intelligence, or AI (software that can generate text, answer questions, and help automate tasks), and toward enterprise sales, which means selling to big organizations.

Atlassian also said it expects pre-tax charges of $225 million to $236 million. These costs are mainly for severance, which is pay and benefits provided when jobs are cut, and other related expenses. The company did not give details on which teams will be affected, but it said the plan includes changes to office space and operations.

The announcement comes after concerns from investors that AI could disrupt Atlassian’s products. Tech companies have been cutting staff in other places too, including WiseTech Global and Block. After Atlassian filed the news with regulators, its shares rose more than 4% in extended trading.

Why it matters

Atlassian makes workplace software used by many teams, so this is another sign that big software companies are reshuffling budgets to build more AI features. For customers, it could mean faster AI additions to collaboration tools, like adding a helpful assistant to the tools people already use (similar to adding an auto-complete helper inside a word processor). For workers across the tech industry, it also shows that AI spending is often being funded by cuts elsewhere.

Source: TechCrunch AI