Australian software giant Atlassian to cut 1600 workers, blaming AI

Software giant Atlassian is cutting 10 per cent of its global workforce, or about 1600 employees, as the company led by billionaire chief executive Mike Cannon-Brookes is upended by AI turbulence.

Cannon-Brookes told staff on Thursday morning that AI was changing “the mix of skills we need” and “the number of roles required in certain areas.”

A spokeswoman said about 30 per cent of the impacted employees are based in Australia. This means about 500 local jobs will be axed.

The company’s share price is down 66 per cent over the past 12 months to $US75.45 ($105). Affected staff will receive a minimum 16-week separation package plus one additional week per year of service, extended healthcare cover for six months, and a $1000 technology payment.

Cannon-Brookes, whose co-CEO Scott Farquhar resigned in April 2024, framed the cuts as offensive rather than defensive.

“The bar for what ‘great’ looks like for software companies – on growth, on profitability, on speed, on value creation – has gone up,” he wrote in a letter to staff. He said the cuts were the product of a “thoughtful and incredibly thorough” process with priority given to retaining staff with AI-relevant and transferable skills.

“We fundamentally believe people and AI create the best outcomes,” he wrote. “Our approach is not ‘AI replaces people’.”

Shares of the company are up more than 4 per cent in after-hours trading in New York.

Afterpay parent company Block this month slashed more than 4000 jobs in the name of artificial intelligence, joining the likes of WiseTech Global, Amazon, Pinterest and Crowdstrike which have all slashed roles.

More to come.

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