Atlassian, the Australian software company behind the workplace tools Jira and Confluence, announced it is cutting approximately 1,600 employees, about 10% of its global workforce, to fund a strategic push into artificial intelligence and enterprise sales.
Of the total layoffs, roughly 250 roles are in India, accounting for about 16% of the cuts. North America accounts for the largest share at 40% (approximately 640 employees), followed by Australia at 30% (approximately 480 employees). The remaining employees impacted are spread across Japan, the Philippines, Europe, the Middle East, and Africa.
Over 900 of the eliminated roles are in software research and development, a significant concentration given that more than half of Atlassian’s 13,813-strong global workforce works in engineering and design.
CEO and Co-founder Mike Cannon-Brookes communicated the decision directly to employees. “We are doing this to self-fund further investment in AI and enterprise sales, while strengthening our financial profile,” he said. He added that the company is also restructuring around its “System of Work” framework to improve organisational agility.
As part of the broader restructuring, Atlassian also confirmed that Rajeev Rajan, the company’s Indian-origin Chief Technology Officer, will step down effective March 31, 2026, after nearly four years in the role. Two senior executives, Taroon Mandhana and Vikram Rao, will split the responsibilities going forward.
Affected employees will receive a severance package that includes a minimum of 16 weeks’ base pay, additional compensation based on years of service, prorated FY 2026 bonuses, and healthcare coverage for up to six months. The company will also offer career transition support and assistance for employees on work visas.
Atlassian’s stock has lost more than half its value since the start of 2026, as investor concerns mount over whether traditional SaaS platforms can hold their ground against AI-native software. The layoffs, however, briefly lifted shares by nearly 2% in after-hours trading on the day of the announcement.
The cuts are part of a broader wave sweeping the global tech industry. Earlier this year, Block announced it would reduce its workforce by 40%, while Amazon confirmed approximately 16,000 corporate layoffs globally, with Indian employees in Bengaluru, Hyderabad, and Chennai identified as particularly vulnerable.
