Atlassian, the company behind Trello, Confluence, and Jira, is cutting about 1,600 employees, or 10% of its workforce.
An important update on our team - Work Life by Atlassian
https://www.atlassian.com/blog/announcements/atlassian-team-update-march-2026
Atlassian slashes 10% of workforce to 'self-fund' investments in AI
https://www.cnbc.com/2026/03/11/atlassian-slashes-10percent-of-workforce-to-self-fund-investments-in-ai.html
Atlassian will also lay off 500 employees, or 5% of its total workforce, in March 2023. Atlassian co-founder and CEO Mike Cannon-Brookes explained at the time that the reason for the layoffs was 'not due to financial issues, but to focus resources on growth areas such as cloud computing.'
Atlassian, known for its business improvement tools such as Trello, Jira, and Confluence, lays off 500 employees - GIGAZINE
Meanwhile, the layoffs, announced on March 11, 2026, were explained as being 'to strengthen our financial position.' Atlassian claims its business is performing well, with cloud revenue growing more than 25% last quarter and more than 40% including RPO (revenue from contracted but unaccounted for) in the first quarter. However, according to CNBC, software stocks in general are experiencing increased selling pressure due to concerns about the competitive threat posed by generative AI tools. Atlassian's stock price has fallen about 84% from its 2021 peak, and more than half of that has fallen in 2026 alone.
Atlassian explained that it would cut approximately 10% of its workforce for two purposes: 'to strengthen its financial position by self-financing further investments in AI and enterprise sales,' and 'to speed up operations by reviewing how work is done and rebuilding business systems.' While Atlassian explained that 'AI will not replace humans,' it said that AI is changing the combination of skills required and the number of roles required in specific fields, and that this restructuring is to adapt to these changes.
Cannon-Brookes CEO released a video announcing the layoffs, saying, 'Needless to say, today is one of the most challenging days we have faced as a company. I deeply apologize for any disruption this has caused to your lives. Your influence and contributions are incredibly important to us and will live on in our products, our customer experiences, and our culture. Thank you for all your contributions.'
Atlassian explained that it will provide affected employees with assistance that exceeds local legal requirements. Specifically, the company will provide a minimum of 16 weeks of severance pay plus one week for each year of service, accelerated payment of 2026 bonuses, technology allowances upon return of company laptops, and a six-month extension of health insurance coverage for affected employees and their families. The company will also provide one-on-one consultations and continued access to mental health support programs, internal relocation assistance, career transition services, individualized support for visa holders, and full coverage of future paid parental leave. These severance packages will be based on local labor laws and subject to consultation with employee representative organizations, as appropriate.
In a blog post announcing the layoffs, CEO Cannon-Brookes concluded, 'We've been on a 20-plus year journey to unlock the potential in every team. For over 20 years, we've demonstrated durability, growth, and resilience, building products that millions of people rely on every day. We've thrived through many innovations and market cycles, and we will continue to do so. This will require continuous adaptation, determination, and the tough decisions that will strengthen Atlassian for the long term.' Atlassian plans to reinvest the cost savings into hiring more AI engineers and strengthening its sales force for the enterprise market.
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