Atlassian Lays Off 1,600 Employees for AI Focus

Atlassian, the Australian software company known for tools like Jira and Trello, announced on Thursday that it is laying off approximately 1,600 employees, representing about 10 percent of its global workforce of around 14,600. The cuts, affecting roles across engineering, sales, and other areas, aim to refocus resources on artificial intelligence initiatives and enterprise sales expansion as the company adapts to evolving technology demands.

Chief Executive Officer Mike Cannon-Brookes, who co-founded the company in 2002 with Scott Farquhar, shared the news in an internal memo and a four-minute video message to staff. He described the decision as difficult yet essential, emphasizing that artificial intelligence is reshaping the skills and number of roles needed rather than simply replacing workers. "Our approach is not AI replaces people," Cannon-Brookes wrote. "But 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 framed the restructuring as a proactive step to elevate the company's performance in growth, profitability, and innovation, following a thorough review that prioritized retaining...