Atlassian to shed ten percent of staff, because AI

Australian collaborationware company Atlassian has announced it will shed ten percent of staff – around 1,600 people.

“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,” wrote CEO Mike Cannon-Brookes. “This is primarily about adaptation. We are reshaping our skill mix and changing how we work to build for the future.”

The CEO said Atlassian decided on the job cuts “to self-fund further investment in AI and enterprise sales, while strengthening our financial profile” and because the company is “changing the way we work and reorganising around our System of Work to move faster.”

Market pressures also influenced the decision.

“The bar for what ‘great’ looks like for software companies – on growth, on profitability, on speed, on value creation – has gone up,” Cannon-Brookes wrote.

Atlassian has done poorly at value creation in ...