Atlassian’s 1,600-worker layoff amid AI push and financial restructuring

✓ Verified by 2+ sources

Key details reported by multiple sources:

• Atlassian laid off approximately 1,600 employees (10% of its global workforce) as part of a restructuring plan, with costs estimated between US$225 million and US$236 million for severance and office space reductions.
• About 480 of the 1,600 layoffs affected Australian employees, representing roughly 30% of the global cuts, with Atlassian employing around 3,500 people in Australia pre-cuts.
• Atlassian’s global workforce stood at approximately 16,000 employees before the layoffs, according to multiple sources.
• Chief Executive Mike Cannon-Brookes announced the layoffs via a pre-recorded video message to staff, stating the decision was among the hardest he had faced as a leader.
• Atlassian’s share price had fallen 66% over the past 12 months, closing at US$75.45 (AUD$105) on the day of the announcement, with a slight 1.5% after-hours increase in some sources.
• Atlassian’s net loss widened to US$42.6 million in its most recent quarter, despite reporting 23% revenue growth in the same period.
• Chief Technology Officer Rajeev Rajan, a former Meta executive, stepped down after nearly four years, with Taroon Mandhana and Vikram Rao promoted to replace him.
• Atlassian’s restructuring is framed as an ‘offensive’ move to invest in AI and enterprise sales, with Cannon-Brookes stating ‘people and AI create the best outcomes’ and rejecting the idea that AI replaces people.
• Affected employees received a minimum 16-week separation package plus one additional week per year of service, along with extended healthcare and a US$1,000 technology stipend.
• Atlassian’s layoffs follow similar cuts by companies like Block (Afterpay’s parent), which cut 4,000 jobs globally, and WiseTech Global, which laid off 2,000 employees.