Atlassian follows Block’s footsteps and cuts staff in the name of AI

In Brief

Australian productivity bundle institution Atlassian held layoffs arsenic the institution looks to funnel much wealth into AI.

Atlassian announced it’s cutting 10% of its workforce, astir 1,600 people, connected March 11. The institution said this determination allows it to walk much funds connected AI, endeavor sales, and to fortify its finances.

More specifically, Atlassian said that it’s doing well, but is choosing to accommodate to marketplace conditions.

“The barroom for what ‘great’ looks similar for bundle companies — connected growth, connected profitability, connected speed, connected worth instauration — has gone up,” Atlassian CEO Mike Cannon-Brooks wrote successful a property merchandise related to the layoffs.

TechCrunch reached retired to Atlassian for much accusation regarding which types of roles were chopped and what happens next.

This quality comes conscionable a fewer weeks aft a similar, albeit much drastic, connection was made by Block CEO Jack Dorsey. In February, the payments institution announced it was cutting much than 4,000 employees, astir fractional of its 10,000 employees astatine the time.

Dorsey said the cuts were being driven by the information that AI could automate a batch of the enactment these employees were doing and predicted that galore different companies would travel to the aforesaid conclusion.

Several enterprise-focused VCs predicted to TechCrunch that 2026 would beryllium the twelvemonth that AI would commencement to instrumentality a meaningful toll connected labor.

So far, their prediction has travel true.

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