Atlassian follows Block’s footsteps and cuts staff in the name of AI

Australian productivity software company Atlassian said it is cutting 10% of its workforce — about 1,600 people — on March 11, reallocating funds toward AI and enterprise sales. The company said the move will let it invest more in AI and enterprise sales and strengthen its finances, noting that it is doing well but must adapt to market conditions.

Mike Cannon-Brookes wrote in the press release, "The bar for what ‘great’ looks like for software companies — on growth, on profitability, on speed, on value creation — has gone up." Atlassian declined to comment beyond the release. The announcement follows Block’s larger round of cuts in February, when the payments firm trimmed more than 4,000 jobs — nearly half its 10,000 employees — as CEO Jack Dorsey said AI could automate much of that work and predicted other companies would reach similar conclusions.

Australia

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