Atlassian to cut 1600 jobs as AI fears send Mike Cannon-Brookes’ tech giant’s shares tumbling
The homegrown software company flagged that it can use AI to replace roles and improve productivity.
Homegrown software giant Atlassian said it would sack 1600 staff after a horror run saw its shares collapse in half in 2026 as investors worry its products will be replaced by technologies linked to advances in artificial intelligence.
The cuts are equal to around 10 per cent of its workforce, and it said it would incur one-off costs up to $US236 million due to employee termination benefits.
“These actions are intended to rebalance the Company to accelerate the future of teamwork in the AI era. This includes self-funding further investment in key strategic priorities, such as AI and enterprise sales.”
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By continuing you agree to our Terms and Privacy Policy.Among the departures is the company’s chief technology officer, Rajeev Rajan, with the company recently naming James Choung to fill the vacant chief financial officer role effective March 2026.
Chief executive and co-founder Mike Cannon-Brookes has repeatedly insisted the company is a winner from AI as it can enhance its products and services.
“I believe this is the right decision for Atlassian. But that doesn’t mean it’s easy. Far from it,” Mr Cannon-Brookes told employees.
However, investors are worried AI native competitors like Anthropic and OpenAI will be able to replicate their products sold to large enterprise customers.
The stock has also been sold on worries that companies will need fewer technology staff in the future, as complex coding and software development can now be performed by AI in a more efficient way.
The tech sector has been hit with a wave of job lay-offs in 2026. Earlier this year, software group WiseTech said it would fire up to 40 per cent of its staff, with Afterpay-owner Block recently saying it will cut 4000 roles as it can use AI to drive productivity.
More to come...
