Australian software giant Atlassian has announced plans to lay off about 10 per cent of its global workforce, or roughly 1600 jobs, as the business restructures around the increased use of artificial intelligence.
Of the 1600 jobs, about 30 per cent – or 480 roles – are based in Australia.
In a notice to staff on the company's website, chief executive Mike Cannon-Brookes said it was the "right decision" and affected employees would receive an email within 20 minutes letting them know if they were impacted.
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"I'm sharing some important news today. I have made the incredibly difficult decision to reduce the size of our team by ~10% (or ~1,600 employees). Every Atlassian will receive an email within the next 20 minutes letting you know if you are impacted, or if we're starting consultation in your region," he wrote.
"I believe this is the right decision for Atlassian. But that doesn't mean it's easy. Far from it.
"I know this has a huge impact on each of you, and it weighs heavily on me and Atlassian today."
In the message, Cannon-Brookes said Slack, the instant-messaging platform used by employees, would stay open on mobile devices for 6 to 12 hours "for impacted employees who want to say goodbye to teammates across the world".
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Cannon-Brookes, who founded the company in 2002 alongside Scott Farquhar, defended the move as "adapting" to market conditions.
Cannon-Brookes is currently listed as Australia's 13th richest person with an estimated personal fortune of $13 billion, while Farquhar is the nation's fourth richest person with $21 billion.
Farquhar resigned as joint CEO of the business in 2024.
In the message to staff Cannon-Brookes defended the job cuts as allowing technology to replace humans.
"We fundamentally believe people and AI create the best outcomes. Our approach is not 'AI replaces people'," he wrote.
"But 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. It does.
"This is primarily about adaptation. We are reshaping our skill mix and changing how we work to build for the future."
All laid off employees would receive a 16-week separation package, a $USD1000 technology payment (upon returning their corporate laptop) and a six-month corporate healthcare plan.
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