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Australian software company Atlassian has announced plans to cut about 10% of its global workforce, affecting roughly 1,600 employees, as part of a restructuring aimed at strengthening investment in artificial intelligence and improving its financial position.
According to the company, more than 900 of the affected roles are in software research and development, reflecting a shift in how the company plans to allocate technical resources. Atlassian had about 13,800 employees as of mid-2025, with a large portion working in engineering and design roles.
The layoffs will impact employees across several regions, including approximately 640 workers in North America, 480 in Australia, and 250 in India, with additional reductions across Europe, the Middle East, Africa, Japan, and the Philippines.
In a message to employees, Atlassian co-founder Mike Cannon-Brookes said the decision was difficult but necessary as the company adapts to changing technology and workforce needs. He said the growing role of AI is altering the mix of skills required within the organization.
The restructuring also includes a leadership change, with Chief Technology Officer Rajeev Rajan stepping down as the company places greater focus on next-generation AI development.
Employees affected by the layoffs will receive a minimum 16 weeks of severance pay, along with extended health benefits and additional transition support.
Atlassian said the restructuring could cost up to $174 million, including workforce reductions and office space changes.
Source: Industry reports and company statements