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Atlassian lays off 1,600 workers ahead of AI push

about 3 hours ago
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Software giant Atlassian has announced it is laying off about 10% of its workforce, or roughly 1,600 positions, and replacing its chief technology officer as it restructures to invest further in artificial intelligence.Shares of the company rose more than 4% in extended trading on the Nasdaq.The company’s co-founder, Mike Cannon-Brookes, told employees the move was “the right decision for Atlassian” in a note circulated late Wednesday, US time.“But that doesn’t mean it’s easy,” he said.“Far from it.

I know this has a huge impact on each of you, and it weighs heavily on me and Atlassian today.”About 640 affected employees are in North America, 480 in Australia and 250 in India, with the remainder spread across Japan, the Philippines, Europe, the Middle East and Africa, a spokesperson said.Atlassian has lost more than half its market value since the start of 2026 as traders grow to fear AI will make the software company’s services obsolete.The share price plunge has wiped more than half the net worth of the company’s Australian founders, Cannon-Brookes and Scott Farquhar.Cannon-Brookes suggested in his statement that AI use had changed the skills and roles the company needed, allowing a restructure to strengthen the company’s financial standing and “self-fund further investment in AI and enterprise sales”.

Addressing the question of whether AI had replaced the 1,600 sacked employees, he wrote: “Our approach is not ‘AI replaces people’.But it would be disingenuous to pretend AI doesn’t change the mix of skills we need or the number of roles required in certain areas.”Atlassian left its Slack work chat functions open for at least six hours longer than usual, to permit employees to farewell their colleagues, Cannon-Brookes said.Affected employees were expected to receive a minimum separation package of 16 weeks’ pay, extended healthcare plans and early pro rata bonuses, as well as a US$1,000 “technology payment” once they returned their corporate laptop.The company reported redundancies and related costs were expected to total up to $174m (A$246m), while office space reductions would involve exit charges of at least $62m (A$87m).

Most costs would be incurred from April to June and paid by the end of September.Atlassian told regulators on Wednesday the restructure would also see its chief technology officer, Rajeev Rajan, step down at the end of March, to be replaced jointly by Taroon Mandhana and Vikram Rao, described as “next generation AI talent”.Atlassian’s redundancy round comes weeks after similar cuts attributed to AI by tech giant Block, the owner of Afterpay, and Australian technology firm WiseTech.Block cut 40% of its global workforce, from 10,000 to under 6,000, with cofounder Jack Dorsey saying improvements in productivity due to AI had “fundamentally” changed the company.WiseTech announced it would cut 2,000 jobs over two years – about 30% of its workforce.

Both companies had seen their share prices plunge over the preceding six months and analysts have suggested each had reason to cut headcount other than AI use alone.
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A clever person knows their limitations … Kemi believes she has none | John Crace

Taxi for Kemi. It’s only a matter of time before Tory MPs start thinking the unthinkable and hand their leader her P45. It could be happening even now. This week’s prime minister’s questions can only have concentrated a few minds. Buyer’s remorse has long since passed

about 9 hours ago
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Starmer attacks Badenoch and Farage over Iran war support U-turns at raucous PMQs

Keir Starmer has attacked Kemi Badenoch and Nigel Farage over their stance on the war in Iran, accusing both of U-turning on their support for Donald Trump.At a raucous prime minister’s questions, Starmer accused the leader of the opposition of making the “mother of all U-turns” and furiously trying to backpedal after on Tuesday she denied calling for the UK to join the US president’s war on Iran, after previously saying Starmer should do more to “stop the people who are attacking us”.Last week Badenoch repeatedly pressed Starmer on his decision not to launch offensive strikes to destroy missile bases, asking: “Why is he asking our allies to do what we should be doing ourselves?”On Wednesday, Starmer said: “If I’d asked her last week, her position would be, we support the initial strikes and we want to join the war. This week, she says, we don’t want to join the war. That is the mother of all U-turns on the single most important decision a prime minister ever has to take, whether to commit the United Kingdom to war or not

about 12 hours ago
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‘Nothing off the table’ as Rachel Reeves considers ‘targeted support’ over energy costs

Rachel Reeves has refused to rule out ditching a planned fuel duty increase in September, as she promised “nothing is off the table” to help consumers with rising energy costs amid the Iran conflict.The chancellor told MPs on the Treasury select committee that options for “targeted support as well as broader measures” were being explored, although she cautioned that it remained “too early” to be sure emergency help was required.Against a backdrop of volatile conditions in energy markets amid the US-Israel war with Iran, Reeves said the government was prioritising the de-escalation of the conflict and pushing for the safe passage of oil and gas exports through the critical strait of Hormuz.She said Britain was also “willing to play its part” to release strategic oil reserves alongside other countries in the 32-member International Energy Agency, in a push to bring down crude prices that have soared.However, she signalled the Treasury was working on contingency plans for an emergency energy support package to help British households bracing for a sharp rise in living costs

about 13 hours ago
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Starmer warned cabinet against ‘overly deferential’ relations with devolved governments

Keir Starmer warned his cabinet against an “overly deferential” approach to the Welsh, Scottish and Northern Irish governments, according to a leaked memo.In the document from December, obtained and published on Tuesday by Plaid Cymru, Starmer said ministers should be prepared to make spending decisions “even when devolved governments may oppose this”. It came shortly after Labour Senedd members wrote to the prime minister over concerns his administration was rolling back devolution powers.“Overly deferential or laissez-faire” engagement with the Celtic administrations would “almost inevitably create political challenges or missed positive opportunities”, he wrote.The memo is dated 10 days after an unprecedented letter to Downing Street signed by a third of Welsh Labour members of the Senedd over a funding row they called “at best deeply insensitive, at worst a constitutional outrage”

about 15 hours ago
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Shabana Mahmood approves police request to ban al-Quds march in London

A pro-Palestinian march in London on Sunday has been banned by Shabana Mahmood after police warned of a risk of “serious public disorder”.The annual al-Quds Day march has drawn criticism over apparent backing for the Iranian regime after its organisers expressed support for the country’s late leader Ayatollah Ali Khamenei.Some participants in the past have waved the flag of the Iranian-backed Hezbollah group, which is banned in the UK as a terrorist group.Announcing her decision to ban the march after a request by the Metropolitan police, Mahmood said she was “satisfied doing so is necessary to prevent serious public disorder, due to the scale of the protest and multiple counterprotests, in the context of the ongoing conflict in the Middle East”.The home secretary added: “Should a stationary demonstration proceed, the police will be able to apply strict conditions

about 19 hours ago
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Hereditary peers to lose their seats in the House of Lords

Hereditary peerages will be abolished before the next king’s speech after a deal was struck granting life peerages to some Conservatives and cross-benchers losing their seats.On Tuesday evening the upper chamber accepted a final draft of the House of Lords (hereditary peers) bill, marking the end of its passage through parliament and clearing the way for it to be added to the statute book.The Lords leader, Angela Smith, confirmed the government would offer life peerages to some of those who would otherwise lose their seats. As a result, the Tories withdrew their opposition to the bill.Since 1999, up to 92 hereditary peers have been able to sit in the upper house and cast their votes in the lobbies but the bill effectively reduces this quota to zero

1 day ago
trendingSee all
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Will releasing millions of barrels of oil stockpiles really bring down fuel costs?

about 9 hours ago
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Lloyd’s of London stresses it is still insuring shipping in strait of Hormuz

about 10 hours ago
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Meta disables more than 150,000 accounts in crackdown on south-east Asian scam networks

about 9 hours ago
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‘Happy (and safe) shooting!’: chatbots helped researchers plot deadly attacks

about 15 hours ago
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Trust at 100km/h: how Bluetooth bond helps skier Neil Simpson see his way to glory

about 8 hours ago
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Kit clash farce looms as France set to wear special pale blue shirt against England

about 8 hours ago