Another tech giant has announced plans for sweeping layoffs artificial intelligence reshapes the workforce.

Software company Atlassian announced Wednesday it will slash around 10 percent of its staff – roughly 1,600 employees – as it shifts resources toward AI and enterprise sales. 

The firm said the cuts are part of a push to focus on what it called the ‘future of teamwork in the AI era.’ Shares rose after the announcement.

Atlassian provides collaboration and productivity software used by more than 300,000 customers worldwide, including around 13 percent of Fortune 500 companies. Major clients include The New York Times and DaimlerChrysler. 

The announcement is the latest in a string of tech layoffs tied to the rapid rise of artificial intelligence. 

Earlier this year, Twitter founder Jack Dorsey axed more than 4,000 jobs – nearly half its workforce – at his payments company Block as it reorganizes around AI. 

Dorsey warned at the time that many companies would soon reach the same conclusion about the impact of artificial intelligence on staffing levels. 

Social media platform Pinterest has also recently trimmed 15 percent of its workforce while pouring more investment into AI tools.   

Atlassian said the majority of impacted employees are ⁠in North America, amounting to 40 percent, followed by 30 percent in Australia and 16 percent in India. 

The company expects the layoffs to cost   $225 million to $236 million. 

‘Our ​approach is not “AI replaces people.” 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,’ CEO Mike Cannon-Brookes said in a ​memo to employees. 

This decision comes as the industry is being increasingly scrutinized amid fears that ​AI advancement could disrupt the traditional business models of software companies.

Though top executives at the World Economic Forum’s annual meeting in January promised that, while some jobs will be lost to AI, others will arise.

Two executives told Reuters that AI would simply be used as an excuse by companies that were already plotting layoffs. 

Atlassian’s shares were down 33 percent last year. The company makes most of its money through its Jira software, used for planning and project management, and Confluence, which is for content creation.  

Atlassian expects the restructuring plan ⁠to be ​mostly complete by the end of the fourth quarter. 

Layoffs have swept across some of America’s largest employers as companies race to invest in artificial intelligence and cut cost

In November 2025, Verizon employees were hit with a devastating letter announcing that about 13 percent of the company’s employees would be axed. 

Target said it would cut 1,000 positions and not fill 800 additional roles as the brand restructures. 

General Motors laid off 1,700 workers across manufacturing sites in Michigan and Ohio, citing a slowdown in the electric vehicle market. 

Even Disneyland laid off 100 of its employees – despite ticket prices for the parks hitting an all-time high.