<p id="speakable-summary" class="wp-block-paragraph">Australian productivity software company Atlassian held layoffs as the company looks to funnel more money into AI.</p>
<p class="wp-block-paragraph">Atlassian announced it’s <a href="https://www.atlassian.com/blog/announcements/atlassian-team-update-march-2026" target="_blank" rel="noreferrer noopener nofollow">cutting 10% of its workforce</a>, around 1,600 people, on March 11. The company said this decision allows it to spend more funds on AI and enterprise sales and to strengthen its finances.</p>
<p class="wp-block-paragraph">More specifically, Atlassian said that it’s doing well but is choosing to adapt to market conditions.</p>
<p class="wp-block-paragraph">“The bar for what ‘great’ looks like for software companies — on growth, on profitability, on speed, on value creation — has gone up,” Atlassian CEO Mike Cannon-Brookes wrote in a press release related to the layoffs.</p>
<p class="wp-block-paragraph">TechCrunch reached out to Atlassian for more information regarding which types of roles were cut and what happens next. Atlassian declined to comment beyond the release. </p>
<p class="wp-block-paragraph">This news comes just a few weeks after a similar, albeit more drastic, statement was made by Block CEO Jack Dorsey. In February, the payments company announced it was <a href="https://techcrunch.com/2026/02/26/jack-dorsey-block-layoffs-4000-halved-employees-your-company-is-next/" target="_blank" rel="noreferrer noopener">cutting more than 4,000 employees</a>, nearly half of its 10,000 employees at the time.</p>
<p class="wp-block-paragraph">Dorsey said the cuts were being driven by the fact that AI could automate a lot of the work these employees were doing and predicted that many other companies would come to the same conclusion.</p>
<p class="wp-block-paragraph">Several enterprise-focused VCs predicted to TechCrunch that <a href="https://techcrunch.com/2025/12/31/investors-predict-ai-is-coming-for-labor-in-2026/" target="_blank" rel="noreferrer noopener">2026 would be the year that AI would start to take a meaningful toll on labor</a>.</p>
<p class="wp-block-paragraph">So far, their prediction has come true.</p>
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