Australian productivity software company Atlassian has cut jobs in a bid to put more money into AI.
Atlassian announced on March 11 that it will cut 10% of its workforce, or approximately 1,600 people. The company said the decision will allow it to put more money into AI and enterprise sales, strengthening its finances.
More specifically, Atlassian said that while it is performing well, it is choosing to adapt to market conditions.
Atlassian CEO Mike Cannon-Brooks said in a press release related to the layoffs: “The bar for what is great for software companies is rising: growth, profitability, speed and value creation.”
TechCrunch reached out to Atlassian for more information on what types of roles will be cut and what will happen next. Atlassian declined to comment after the release.
The news comes just weeks after Block CEO Jack Dorsey issued a similar, albeit bolder, statement. The payments company announced in February that it would cut more than 4,000 jobs, almost half of its 10,000 employees at the time.
Dorsey said the fact that AI can automate many tasks previously performed by employees is a driving force behind the layoffs, and predicted that many other companies will come to a similar conclusion.
Several enterprise-focused VCs told TechCrunch that 2026 will be the year that AI begins to place a significant burden on labor.
So far, their predictions have come true.
