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Atlassian, the renowned Australian software titan, has revealed its intention to reduce its global workforce by about 10%, resulting in the elimination of approximately 1,600 positions. This significant move aligns with the company’s strategic restructuring to focus more on the burgeoning field of artificial intelligence.
The layoffs will affect nearly 480 roles based in Australia, accounting for roughly 30% of the total job cuts. This indicates a considerable impact on the local workforce as the company adapts to new technological demands.
In a candid message posted on the company’s website, CEO Mike Cannon-Brookes communicated the challenging decision to the Atlassian team. He acknowledged the gravity of the situation, stating that affected employees would be informed via email shortly after his announcement.
“I have some crucial news to share today. I have made the incredibly difficult decision to reduce our workforce by approximately 10%, translating to around 1,600 employees,” Cannon-Brookes wrote. “Each Atlassian will receive an email within the next 20 minutes, indicating whether they are affected or if consultation will commence in their region.”
Cannon-Brookes emphasized his belief that this decision is in the company’s best interest, despite the inherent challenges it presents. “I firmly believe this is the right decision for Atlassian,” he expressed, “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”.
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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