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Atlassian Cuts 1,600 Jobs in AI-Focused Restructuring

The company says the reductions will self-fund expanded investment in artificial intelligence and enterprise sales.

Overview

  • About 10% of roles are being eliminated, with 40% of cuts in North America, 30% in Australia and 16% in India, and more than 900 positions from software R&D.
  • Atlassian projects $225 million to $236 million in charges tied to severance and office reductions, with disclosures pointing to completion mostly by end of June or substantially by fiscal fourth quarter.
  • Impacted employees will receive at least 16 weeks of pay plus a week per year of service, pro-rated bonuses, extended healthcare coverage, and a $1,000 technology stipend.
  • CTO Rajeev Rajan will step down on March 31, with Taroon Mandhana and Vikram Rao taking on his responsibilities as the company sharpens its AI leadership.
  • Shares rose in extended trading after the announcement, while Australia’s Professionals Australia union criticized the speed and consultation process.