Atlassian has cut about 10% of its workforce — roughly 1, 600 positions — and replaced its chief technology officer as it restructures to invest more in artificial intelligence and enterprise sales. This move signals a push to self-fund AI and enterprise sales that could change the mix of skills and the geographic footprint at atlassian.
Atlassian headcount cut: 1, 600 roles and global distribution
The confirmed reduction affects approximately 1, 600 jobs, about 10% of the company’s staff, with more than 900 of those roles in software research and development. Most employees work in software engineering and design, which account for over 50% of its 13, 813 full-time workforce in June 2025. Regionally, roughly 640 affected roles were in North America, 480 in Australia and 250 in India, with the remainder spread across Japan, the Philippines, Europe, the Middle East and Africa.
Mike Cannon-Brookes’ message: graduates, high performers and transferable skills
Mike Cannon-Brookes outlined three categories Atlassian focused on retaining during the cuts: strong performers, graduates, and employees with transferable skills. He framed the restructuring as driven by changes in the skills the company needs as it increases AI use, while saying the approach is not ‘AI replaces people. ’ Still, Cannon-Brookes acknowledged that AI changes the number and mix of roles required in certain areas.
Atlassian also left its Slack work chat functions open at least six hours longer than usual so employees could say farewell to colleagues. Affected employees were expected to receive a minimum separation package of 16 weeks’ pay, extended healthcare plans and early pro rata bonuses, as well as a US$1, 000 “technology payment. ”
Professionals Australia and the 19 March (ET) consultation timetable
Professionals Australia said impacted employees were told on Thursday and that a consultation process will last until 19 March (ET), with final termination expected on 2 April (ET). Paul Inglis, a director at Professionals Australia, said workers had been made redundant without consultation or signs that a restructure would affect their jobs. The union requested an urgent meeting to discuss the company’s introduction of AI technology and its direct connection to the redundancies, and a union spokesperson characterized the move as a ‘‘devastating blow’’ for workers.
If the self-funding push continues: deeper AI investment and role reshaping
If Atlassian continues to restructure to ‘‘self-fund further investment in AI and enterprise sales, ’’ the visible direction is toward reallocating budget and headcount from existing R& D roles into AI and enterprise sales priorities. Context facts that support this trajectory include the replacement of the chief technology officer and the company statement linking AI use to changed skill mixes. Should that trajectory persist, expect continued concentration of hiring and retainment in graduates and employees with transferable skills while other technical roles remain under pressure.
Should Professionals Australia alter consultation outcomes: possible process and timing shifts
Should Professionals Australia secure changes during the consultation that runs to 19 March (ET), the company could be required to modify severance timing or consultation procedures before final terminations on 2 April (ET). This scenario rests on the union’s request for an urgent meeting and Paul Inglis’ assertion that employees lacked prior consultation, both explicit in the current facts. If those talks change employer obligations, the pace and shape of the workforce reduction could shift.
What the context does not resolve is who will replace the chief technology officer and the precise scope or dollar amounts of the AI and enterprise-sales investments. The next confirmed signals in the record are the consultation deadline on 19 March (ET) and the expected final terminations on 2 April (ET); those dates will determine whether the restructure and its staffing consequences proceed as outlined.
