Australian productiveness software program firm Atlassian held layoffs as the corporate seems to be to funnel extra money into AI.
Atlassian introduced it’s cutting 10% of its workforce, round 1,600 folks, on March 11. The corporate mentioned this choice permits it to spend extra funds on AI and enterprise gross sales and to strengthen its funds.
Extra particularly, Atlassian mentioned that it’s doing nicely however is selecting to adapt to market circumstances.
“The bar for what ‘nice’ seems to be like for software program corporations — on progress, on profitability, on velocity, on worth creation — has gone up,” Atlassian CEO Mike Cannon-Brookes wrote in a press launch associated to the layoffs.
TechCrunch reached out to Atlassian for extra data relating to which varieties of roles have been lower and what occurs subsequent. Atlassian declined to remark past the discharge.
This information comes only a few weeks after the same, albeit extra drastic, assertion was made by Block CEO Jack Dorsey. In February, the funds firm introduced it was chopping greater than 4,000 workers, almost half of its 10,000 workers on the time.
Dorsey mentioned the cuts have been being pushed by the truth that AI may automate a number of the work these workers have been doing and predicted that many different corporations would come to the identical conclusion.
A number of enterprise-focused VCs predicted to TechCrunch that 2026 could be the yr that AI would begin to take a significant toll on labor.
To date, their prediction has come true.
