Atlassian has cut roughly 10% of its global workforce—about 1,600 people—as the Sydney-founded software company restructures to pour more money into artificial intelligence and enterprise sales. CEO Mike Cannon-Brookes broke the news to staff on March 11 in a blog post and a four-minute video, saying the decision was “incredibly difficult” but necessary to keep Atlassian competitive.The cuts hit hardest in R&D, with more than 900 of the affected roles coming from software research and development. Geographically, 640 employees are based in North America, 480 in Australia, and 250 in India, with the rest spread across Japan, the Philippines, Europe, the Middle East, and Africa.
Graduates made the cut—mid-career workers weren’t so lucky
When deciding who stays, Cannon-Brookes said the company focused on three groups: strong performers, employees with transferable skills, and—perhaps surprisingly—recent graduates. The logic isn’t entirely mysterious. Graduates tend to be more AI-native, carry fewer entrenched habits, and, frankly, cost less. Last October, Cannon-Brookes had said graduates “come in with a different view on what it means to be a software developer and shake up the existing world of talent in a positive way.”On the AI question everyone was waiting for, he didn’t dodge it entirely. “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,” he wrote. But he stopped short of calling it a straight replacement story.
Redundancy costs and office exits will set Atlassian back at least $236 million
The severance terms go beyond what the law requires in most regions. Departing employees get at least 16 weeks’ pay—plus an extra week for every year served—along with pro-rata bonuses, six months of extended healthcare, and a $1,000 technology payment once they hand back their laptop. Employees with scheduled parental leave will be paid out in full, and those on visas get dedicated support navigating what comes next.The restructuring won’t come cheap. Redundancy costs alone are expected to hit up to $174 million, with office space exits adding at least another $62 million on top. Most of it lands before the end of March. Still, markets took the news well — Atlassian’s stock climbed around 4% in after-hours trading, a signal that investors see the pain as short-term and the direction as right.
