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Atlassian follows Block’s footsteps and cuts staff in the name of AI

Read the full articleAtlassian follows Block’s footsteps and cuts staff in the name of AI on TechCrunch

What Happened

Atlassian laid off 10% of its workforce, around 1,600 people, as the company looks to funnel more funds to AI.

Our Take

Look, 1,600 people got cut so Atlassian could fund... what exactly? They don't have an AI product yet. This is cost-cutting dressed up as strategy. Happens every time a big company panics about being left behind.

The thing is, Jira's AI features have been promised for 18 months. Cutting engineering to fund AI when you don't have one in production is backwards. You don't slash overhead *before* you prove the new stuff works—you do it after.

Expect a half-baked copilot in Confluence by Q3, mediocre adoption metrics, and a quiet wind-down in 2027. This money would've been better spent finishing one real product instead of staffing 5 vaporware roadmaps.

What To Do

Skip Atlassian's AI announcements for 18 months—they're reorganizing, not shipping.

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