Atlassian has announced it will reduce its global workforce by about 10 per cent, cutting around 1,600 jobs. The layoffs are part of a wider restructuring plan aimed at redirecting resources toward artificial intelligence (AI) and enterprise sales. Roughly 30 per cent of the affected employees are based in Australia, which means about 500 local jobs will be lost, while the rest are spread across international offices.
Alongside the job cuts, Atlassian is reshaping its leadership team. Rajeev Rajan, chief technology officer will reportedly step down on 31 March after nearly four years in the role. Taroon Mandhana will become CTO for Teamwork, while Vikram Rao will take on the roles of CTO for Enterprise and chief trust officer.
These appointments are designed to align with Atlassian’s new technology roadmap focused on AI.
The company has outlined a severance package to support employees leaving. Each worker will receive at least 16 weeks of pay, plus an additional week for every year of service. Healthcare coverage will continue for six months, and staff will also get a $1,000 technology payment to help with the transition. A pro-rated bonus for the current financial year will also be included.
The Australian-American proprietary software company, that specialises in collaboration tools designed primarily for software development and project management, expects the total costs of layoffs and office space reductions to be between $225 million and $236 million. Most of these charges will be recorded in the third quarter, with the restructuring process continuing into the fourth quarter. The company says this timeline will allow it to reorganise operations and invest more heavily in AI-driven products.
Mike Cannon-Brookes, CEO, Atlassian, informed employees that notifications about job status would be delivered quickly, with affected staff receiving confirmation within minutes. The restructuring is expected to be largely complete by the end of the fourth quarter.
