Australian productivity software firm Atlassian has conducted layoffs as part of a strategic shift to redirect resources toward artificial intelligence. On March 11, the company announced it is reducing its workforce by 10%, affecting approximately 1,600 employees. Atlassian stated that this move will free up capital to invest in AI, expand its enterprise sales efforts, and bolster its financial position.

The company emphasized that its performance remains strong, but it is proactively adjusting to evolving market demands. In a press release addressing the layoffs, Atlassian CEO Mike Cannon-Brooks noted, “The bar for what ‘great’ looks like for software companies - on growth, on profitability, on speed, on value creation - has gone up.” Atlassian has not provided additional commentary beyond the official statement.

This announcement follows a similar, though more extensive, workforce reduction recently highlighted by Block CEO Jack Dorsey. In February, the payments company revealed plans to cut over 4,000 positions, nearly half of its then 10,000-strong workforce. Dorsey explained that AI-driven automation could handle much of the work performed by those employees and anticipated that numerous other companies would reach the same realization. To date, that prediction appears to be materializing.