Australian-based software giant Atlassian has parted ways with more than 1600 employees due to artificial intelligence reshaping the workforce. This move is considered one of the biggest examples of artificial intelligence beginning to replace human labor in the technology sector.
According to Medianews.az citing Milli.Az, the company's founder, billionaire Mike Cannon-Brookes, stated that artificial intelligence has fundamentally changed the "required mix of skills" and the "number of roles in some areas." About 30% of those laid off are specialists working in offices in Australia.
Against the background of the layoff news, Atlassian's financial indicators also paint a bleak picture:
The company's shares have lost 50% of their value since early 2026 and 66% over the past year.
The market value, which was $162 billion in 2021 (during the pandemic period), has now dropped to approximately $19.9 billion.
Investors are wary of two main factors:
Reduction of the workforce: Artificial intelligence allowing tasks to be done with fewer people disrupts the company's internal structure.
Decrease in demand: Atlassian obtains most of its revenue from license fees based on the number of users (per-user license fee). As the number of employees working in companies decreases due to artificial intelligence, the demand for software licenses automatically drops as well.