Atlassian to Reduce 1,600 Jobs in the Latest AI-Linked Cuts Australian software company Atlassian Corp. plans to cut 1,600 jobs, representing approximately 10% of its global workforce, as part of broader industry adjustments to the rise of artificial intelligence and a post-pandemic economic slowdown. The decision, announced by founder and CEO Mike Cannon-Brookes in a staff memo, marks another wave of AI-driven layoffs in the tech sector. Cannon-Brookes also revealed that his chief technology officer would be leaving the Sydney-based firm. The job reductions are part of a global trend as companies reassess their staffing needs in an era where AI is increasingly capable of automating tasks previously handled by humans. However, critics argue that some firms may be using AI as a justification for traditional cost-cutting measures rather than genuine technological transformation. Cannon-Brookes acknowledged the shift, stating, “It would be disingenuous to pretend AI doesn’t change the mix of skills we need or the number of roles required in certain areas.” The move has intensified scrutiny over “AI-washing,” a term used to describe companies leveraging AI hype to mask outdated cost-cutting strategies. This debate has gained traction following recent layoffs at tech giants like Block Inc. and Oracle Corp., which also cited AI as a reason for workforce reductions. Atlassian joins other firms such as WiseTech Global Ltd., which plans to cut nearly 30% of its staff over two years, and Commonwealth Bank of Australia, which is reducing around 300 positions as it adapts to an AI-driven future. Atlassian’s stock rose about 1.5% in extended trading after the announcement, despite the company expecting to incur approximately $230 million in severance and related expenses.#mike_cannonbrookes #atlassian_corp #sydney #block_inc #oracle_corp
