Atlassian is Cutting 1,600 Jobs; 250 Roles Cut in India

Software giant Atlassian has announced a major restructuring plan that involves laying off approximately 1,600 employees, representing roughly 10% of its global workforce.

The move, announced by co-founder and CEO Mike Cannon-Brookes, is designed to “rebalance” the company’s resources as it aggressively pivots toward artificial intelligence and enterprise-level sales.

Atlassian Strategic Shift Toward an “AI-First” Future

In a memo to staff, Cannon-Brookes emphasized that the need to “self-fund” operations drove the decision. This will allow for further investments in AI.

While he clarified that the strategy is not a direct case of “AI replacing people,” he acknowledged that the technology is fundamentally changing the “mix of skills” and the number of roles required in specific areas.

The restructuring coincides with a significant leadership shakeup.

Chief Technology Officer Rajeev Rajan will step down on March 31.

He will be replaced by two “next-generation” leaders: Taroon Mandhana, who will become CTO for Teamwork, and Vikram Rao, who will serve as CTO for Enterprise and Chief Trust Officer.

Atlassian intends these appointments to align the company’s engineering efforts with its new AI-driven roadmap.

Impact on Global and Indian Operations

The layoffs are distributed across Atlassian’s international hubs. North America faces the largest impact at 40% of the cuts, followed by Australia at 30%.

Atlassian is eliminating approximately 250 roles in India, accounting for roughly 16% of the total global redundancies.

Despite the cuts, Atlassian continues to view India as a major talent hub.

However, the current “rebalancing” suggests a shift toward hiring for specialized AI and cloud engineering roles instead of traditional maintenance positions.

Financial Impact and Employee Support

Atlassian expects to incur charges between $225 million and $236 million related to severance packages and office space reductions.

Affected employees will receive a minimum of 16 weeks of pay, plus an additional week for every year of service.

The package includes six months of extended healthcare and pro-rated bonuses for the 2026 fiscal year.

The company also provides a $1,000 “technology payment” once employees return their corporate laptops.

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