Atlassian lays off 1,600, cites AI shift

Atlassian's layoffs are part of a restructuring plan to focus on artificial intelligence development and enterprise sales. The company aims to rebalance internal resources to prepare for the "future of teamwork in the AI era". The layoffs will affect approximately 1,600 employees, representing about 10% of Atlassian's global workforce. Around 30% of the job cuts will impact Australian employees. The company expects to incur pre-tax charges between $225 million and $236 million related to the layoffs and office space reductions. Affected employees are expected to receive a minimum separation package, extended healthcare plans, and a "technology payment". Atlassian's shares rose more than 4% in extended trading after the announcement, suggesting investors responded positively to the company's focus on AI. CEO Mike Cannon-Brookes stated the move was "the right decision" to strengthen the company's financial standing and self-fund further investment in AI. Other tech companies, like Block (owner of Afterpay) and WiseTech, have also recently made cuts attributed to AI. Some analysts suggest that AI is being used as a justification for cuts that were already planned.