Software giant Atlassian is slashing 10% of its global workforce—around 1,600 employees—as AI disruptions shake the company.
Chief executive Mike Cannon-Brookes informed staff that AI is reshaping “the mix of skills we need” and “the number of roles required in certain areas,” marking the company’s biggest restructure in its 23-year history.
Cannon-Brookes called the decision one of the toughest he’s faced as a leader.
“Days like these are among the toughest that we have as a company, and certainly the toughest that I have as a leader,” he said. “I am deeply sorry for the disruption this creates in your life.”
Atlassian’s share price has fallen 66% over the past 12 months to US$75.45 (NZ$127.87), though it rose more than 4% in New York after-hours trading.
Cannon-Brookes said over 100 Atlassian staff identified roles for cuts, prioritising retention of those with AI-relevant and transferable skills.
Affected staff will get at least a 16-week severance package, plus one extra week per year of service, six months of extended healthcare, and a A$1000 tech payment to replace their corporate laptop.
“The bar for what ‘great’ looks like for software companies – on growth, on profitability, on speed, on value creation – has gone up,” Cannon-Brookes told staff.
He described the cuts as the result of a “thoughtful and incredibly thorough” process.
“We fundamentally believe people and AI create the best outcomes.”
“Our approach is not that AI replaces people’.”
Cannon-Brookes announced a company-wide town hall next week for staff to ask further questions.
“Please be kind to yourselves and to each other.”
“Check in on your teammates and friends and give people everywhere the space to process.”