In Brief Posted: 10:20 AM PDT · March 12, 2026 Image Credits: Bloomberg / Contributor Rebecca Szkutak Atlassian follows Block’s footsteps and cuts staff in the name of AI Australian productivity software company Atlassian held layoffs as the company looks to funnel more money into AI. Atlassian announced it’s cutting 10% of its workforce , 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. More specifically, Atlassian said that it’s doing well but is choosing to adapt to market conditions. “The bar for what ‘great’ looks like for software companies — on growth, on profitability, on speed, on value creation — has gone up,” Atlassian CEO Mike Cannon-Brookes wrote in a press release related to the layoffs. 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. 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 , nearly half of its 10,000 employees at the time. 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. Several enterprise-focused VCs predicted to TechCrunch that 2026 would be the year that AI would start to take a meaningful toll on labor . So far, their prediction has come true. Topics AI , Atlassian , Australia , block , Enterprise , In Brief , Layoffs , tech layoffs June 9 Boston, MA Actively scaling? Fundraising? Planning your next launch? TechCrunch Founder Summit 2026 delivers tactical playbooks and direct access to 1,000+ founders and investors who are building, backing, and closing. Register by March 13 to save up to $300. REGISTER NOW Newsletters See More Subscribe for the industry’s biggest tech news TechCrunch Daily News Every weekday and Sunday, you can get the best of TechCrunch’s coverage. TechCrunch Mobility TechCrunch Mobility is your destination for transportation news and insight. Startups Weekly Startups are the core of TechCrunch, so get our best coverage delivered weekly. StrictlyVC Provides movers and shakers with the info they need to start their day. No newsletters selected. Subscribe By submitting your email, you agree to our Terms and Privacy Notice . Related AI Canopii looks to succeed where past indoor farms have not Rebecca Szkutak 1 day ago Latest in AI Commerce Facebook Marketplace now lets Meta AI respond to buyers’ messages Aisha Malik 23 minutes ago Apps Tinder tries to lure people back to online dating with IRL events, virtual speed dating Lauren Forristal 43 minutes ago In Brief Atlassian follows Block’s footsteps and cuts staff in the name of AI Rebecca Szkutak 1 hour ago