Tech Explained: Here’s a simplified explanation of the latest technology update around Tech Explained: Atlassian cuts workforce by 10% due to AI investment in Simple Termsand what it means for users..
Affected employees will receive at least 16 weeks’ pay, plus an additional week for each year of service. There are also pro‑rated bonuses for the 2026 financial year, six months of extended health cover for eligible staff and their families, and a US$1000 technology stipend once staff return their corporate laptops so they can buy new devices.
Internally, Cannon‑Brookes urged staff to look out for each other, encouraging those staying to support colleagues who are leaving and promising a company‑wide town hall next week to answer further questions.
Slack, Atlassian’s workplace chat tool, is being kept open on mobile devices for several hours for departing staff so they can say their goodbyes and exchange details with teammates around the world.
Part of a global AI jobs reckoning
Atlassian’s move adds to a growing list of tech firms slashing staff under the banner of AI transformation. Earlier this month, Afterpay owner Block cut more than 4,000 jobs citing artificial intelligence, while other software and cloud players including WiseTech Global, Amazon, Pinterest and CrowdStrike have all announced their own restructures.
Global executives, including those at the World Economic Forum in January, have long argued that AI will both eliminate and create jobs. But many have also acknowledged that companies are using AI as a justification to accelerate redundancies that may have been coming anyway as investors demand leaner operations.