Australian productivity software company Atlassian made layoffs as the company looks to invest more money in AI.
Atlassian announced this Cut your workforce by 10%About 1,600 people on March 11. The company said the decision allows it to spend more money on AI, enterprise sales and strengthen its finances.
More specifically, Atlassian said it is performing well, but is choosing to adapt to market conditions.
“The focus on what ‘great’ looks like for software companies – on growth, on profitability, on speed, on value creation – has escalated,” Atlassian CEO Mike Cannon-Brookes wrote in a press release related to the layoffs.
TechCrunch reached out to Atlassian for more details on what types of roles were cut and what’s next.
This news comes just weeks after a similar, albeit more harsh, statement from Block CEO Jack Dorsey. In February, the payments company announced that More than 4,000 employees cutAbout half of its 10,000 employees at the time.
Dorsey said the cuts are being driven by the fact that AI can automate much of the work being done by these employees and predicted that many other companies will come to the same conclusion.
Several venture-focused VCs told TechCrunch this was predicted 2026 will be the year AI starts to have a meaningful impact on labor.
So far, his prediction has come true.
