AI Redundancy Toolkit · AULog in
AU Software and technology · 25 Aug 2026

Atlassian cuts 1,600 jobs to fund accelerated AI investment

The Australian software company said the reduction would support faster AI investment and enterprise sales while changing the skills it needs.

Atlassian will cut about 1,600 jobs, roughly 10% of its global workforce, in a restructuring announced on 11 March 2026. The company said the reduction would help fund accelerated investment in artificial intelligence and enterprise sales.

Around 480–500 Australian roles are affected, with cuts spanning research and development and other areas. Atlassian also said the skills it needs are changing as AI becomes more central to its operations and products.

The announcement follows other large, AI-linked reductions in Australian-origin technology companies, including Block’s reported 4,000-job cut and WiseTech Global’s planned 2,000-job reduction. However, a July Australian government report found no evidence of broad, mass AI-driven job losses nationally, with employment in AI-exposed roles still growing more slowly in some areas.

For an employer planning a similar restructure, an AI investment target is not itself a redundancy rationale. Identify the specific work that has genuinely reduced or disappeared, consult affected employees before deciding, and assess reasonable redeployment into roles created or reshaped by the transformation. Keep evidence linking the changed work—not simply the technology project—to each proposed position outcome.

Key points
  • Atlassian announced about 1,600 job cuts, approximately 10% of its global workforce, on 11 March 2026.
  • The company linked the restructure to accelerated AI investment and enterprise sales.
  • About 480–500 Australian roles are affected, across R&D and other areas.
  • Atlassian said AI was changing the skills it needs.
  • A July 2026 government report found no evidence of broad, mass AI-driven job losses nationally in Australia.

For employers: For an AI-driven restructure, document which duties have genuinely reduced or disappeared, consult before deciding redundancies, and assess reasonable redeployment into new or reshaped roles created by the transformation.

Sources: Team Update: March 2026 · Atlassian cuts 1,600 staff as AI push reshapes workforce · AI not causing mass layoffs in Australia, says government report

General information for employers, not legal advice. Reporting summarised from the linked sources; confirm details with the primary source.