Former staff members at software giant Atlassian claim the company laid off nearly 500 Australian employees without warning or proper communication, leaving many feeling blindsided and without closure.
“We were probably exceeding expectations,” says Rubio, who was one of those let go. “There’s no explanation from the company as a whole as to why any of this happened.”
The layoffs, which affected around 10% of Atlassian’s workforce, came as part of the company’s shift towards investing more in AI and becoming more agile.
However, former staff members say that despite the company’s claims that AI would help retain talent, many were left without a choice but to use these tools or face performance issues.
The layoffs have sparked concerns about “AI-washing,” where companies prioritize using AI over retaining human workers with valuable skills.
Rebecca, a designer who was laid off, says she believes little regard was paid to individual circumstances and abilities. “We thought that we were safe,” she says. “These AI agents have been really, really helpful… but you couldn’t use something like that to replace an actual human worker.”
The company’s co-founder, Mike Cannon-Brookes, claims that the layoffs were necessary to ensure the company’s future success in a rapidly changing industry.
But former staff members say they feel betrayed and are struggling to find new employment due to the lack of clear communication from the company.
Source: https://www.theguardian.com/technology/2026/mar/21/atlassian-cuts-layoffs-staff-now-looking-for-work-ai