Atlassian lays off 1,600 employees, including in India, as it ramps up AI investment
Atlassian layoffs: The company said the majority of impacted employees are based in North America, accounting for about 40% of the layoffs, followed by roughly 30% in Australia and around 16% in India.
- Mar 12, 2026,
- Updated Mar 12, 2026 11:42 AM IST
Atlassian has cut about 10% of its workforce, or roughly 1,600 employees, as the Australian software firm shifts more resources toward artificial intelligence and enterprise sales, CEO Mike Cannon-Brookes said.
“I’m sharing some important news today. I have made the incredibly difficult decision to reduce the size of our team by ~10% (or ~1,600 employees),” Cannon-Brookes said in a message to employees.
Employees across regions were informed that they would receive emails indicating whether they were affected by the layoffs or whether consultations would begin in their region.
The company said the majority of impacted employees are based in North America, accounting for about 40% of the layoffs, followed by roughly 30% in Australia and around 16% in India.
Cannon-Brookes said the move was aimed at allowing the company to fund new investments while improving its financial position.
“We are doing this to self-fund further investment in AI and enterprise sales, while strengthening our financial profile,” he said.
The company is also reorganising its structure around what it calls its “System of Work” framework in a bid to move faster and adapt to changes in the software industry.
“We’re also changing the way we work and reorganising around our System of Work to move faster,” Cannon-Brookes said.
As part of its restructuring and reorganisation, the company also announced that Rajeev Rajan will step down from the role of Chief Technology Officer, effective March 31, 2026, after almost four years with the company.
The layoffs come as technology companies globally increase spending on AI infrastructure and software capabilities while attempting to streamline costs elsewhere.
Cannon-Brookes acknowledged the impact of the cuts on employees.
“I believe this is the right decision for Atlassian. But that doesn’t mean it’s easy. Far from it. I know this has a huge impact on each of you, and it weighs heavily on me and Atlassian today,” he said.
The company said affected employees would receive a separation package that includes a minimum 16-week severance payment, additional pay based on years of service, prorated bonuses for fiscal year 2026 and healthcare coverage for up to six months for eligible employees and families.
Atlassian will also provide career transition services and support for employees seeking internal roles or requiring visa assistance.
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Atlassian has cut about 10% of its workforce, or roughly 1,600 employees, as the Australian software firm shifts more resources toward artificial intelligence and enterprise sales, CEO Mike Cannon-Brookes said.
“I’m sharing some important news today. I have made the incredibly difficult decision to reduce the size of our team by ~10% (or ~1,600 employees),” Cannon-Brookes said in a message to employees.
Employees across regions were informed that they would receive emails indicating whether they were affected by the layoffs or whether consultations would begin in their region.
The company said the majority of impacted employees are based in North America, accounting for about 40% of the layoffs, followed by roughly 30% in Australia and around 16% in India.
Cannon-Brookes said the move was aimed at allowing the company to fund new investments while improving its financial position.
“We are doing this to self-fund further investment in AI and enterprise sales, while strengthening our financial profile,” he said.
The company is also reorganising its structure around what it calls its “System of Work” framework in a bid to move faster and adapt to changes in the software industry.
“We’re also changing the way we work and reorganising around our System of Work to move faster,” Cannon-Brookes said.
As part of its restructuring and reorganisation, the company also announced that Rajeev Rajan will step down from the role of Chief Technology Officer, effective March 31, 2026, after almost four years with the company.
The layoffs come as technology companies globally increase spending on AI infrastructure and software capabilities while attempting to streamline costs elsewhere.
Cannon-Brookes acknowledged the impact of the cuts on employees.
“I believe this is the right decision for Atlassian. But that doesn’t mean it’s easy. Far from it. I know this has a huge impact on each of you, and it weighs heavily on me and Atlassian today,” he said.
The company said affected employees would receive a separation package that includes a minimum 16-week severance payment, additional pay based on years of service, prorated bonuses for fiscal year 2026 and healthcare coverage for up to six months for eligible employees and families.
Atlassian will also provide career transition services and support for employees seeking internal roles or requiring visa assistance.
For Unparalleled coverage of India's Businesses and Economy – Subscribe to Business Today Magazine