Australian productivity software company Atlassian held layoffs as the company looks to funnel more money into AI.<\/p>\n
Atlassian announced it\u2019s cutting 10% of its workforce<\/a>, around 1,600 people, on March 11. The company said this decision allows it to spend more funds on AI and enterprise sales and to strengthen its finances.<\/p>\n More specifically, Atlassian said that it\u2019s doing well but is choosing to adapt to market conditions.<\/p>\n \u201cThe bar for what \u2018great\u2019 looks like for software companies \u2014 on growth, on profitability, on speed, on value creation \u2014 has gone up,\u201d Atlassian CEO Mike Cannon-Brookes wrote in a press release related to the layoffs.<\/p>\n TechCrunch reached out to Atlassian for more information regarding which types of roles were cut and what happens next. Atlassian declined to comment beyond the release. <\/p>\n This news comes just a few weeks after a similar, albeit more drastic, statement was made by Block CEO Jack Dorsey. In February, the payments company announced it was cutting more than 4,000 employees<\/a>, nearly half of its 10,000 employees at the time.<\/p>\n Dorsey said the cuts were being driven by the fact that AI could automate a lot of the work these employees were doing and predicted that many other companies would come to the same conclusion.<\/p>\n