Atlassian announced it is cutting 10% of its workforce, approximately 1,600 employees, citing a need to redirect funds toward AI, enterprise sales, and financial strengthening. CEO Mike Cannon-Brooks framed the decision as adapting to rising standards for software companies. The move follows Block's February announcement of cutting over 4,000 employees, with CEO Jack Dorsey attributing those cuts to AI automation. Enterprise VCs had predicted 2026 would be the year AI begins meaningfully impacting labor, and these layoffs appear to confirm that trend.
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