Atlassian Cuts 1,600 Jobs to Fund AI Push, Replaces CTO

Atlassian will lay off about 1,600 employees (roughly 10% of its workforce) and replace its chief technology officer as part of a restructuring to invest more in artificial intelligence. Severance and related costs could total up to $174 million, plus at least $62 million in exit charges. Reductions hit mainly software R&D and engineering across North America, Australia and India, with the company noting the layoffs are aimed at strengthening its financial position to self-fund AI and enterprise sales. CTO Rajeev Rajan will be replaced by Taroon Mandhana and Vikram Rao; founders say AI-driven changes justify the move, even as it weighs on staff. Shares rose about 4% in after-hours trading.