Homegrown software giant Atlassian is cutting nearly 500 jobs from its Australian workforce as artificial intelligence slashes its labour needs and funds are sought to invest in the nascent technology.
Chief executive Mike Cannon-Brookes broke the news that 10 per cent of the company’s global workforce, equating to 1,600 positions, would be let go in a pre-recorded video posted online.
“We don’t make — I don’t make decisions like this lightly,” Mr Cannon-Brookes said.
“I am deeply sorry for the disruption this creates in your life. Your impact and contributions here matter massively.
“I made this call because I believe this is the right decision for Atlassian’s long-term health.”
The company said it sent an email to employees within 20 minutes of the video being published to let them know if their role was impacted.
Atlassian’s Australian workforce will account for 30 per cent of the global job cuts, with 480 roles being culled here.
“We fundamentally believe people and AI create the best outcomes,” Mr Cannon-Brookes said in a post accompanying the video.
“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.“
Funds freed up by the labour cuts will “self-fund further investment in AI and enterprise sales”, he added.
Impact of shifting technology landscape
The cuts are another example of how AI is changing the workforce of businesses operating in Australia, contributing to an emerging pattern of redundancies.
Atlassian, a software company founded in Sydney in 2001 before listing on the NASDAQ in 2015, has a market capitalisation of about $US20 billion ($27.9 billion).
Atlassian co-CEO Mike Cannon-Brookes announced the job cuts. (AAP: Dan Himbrechts)
But the shifting technology landscape has seen it shed two-thirds of its value in the last year, dropping from $US221 to $US75.45 a share.
Last financial year, it made $US5.2 billion in revenue and generated $US1.4 billion in free cash flow.
A new Atlassian headquarters is being built next to Sydney’s Central Station. (ABC News: Adam Griffiths)
The cuts to its local workforce come as the construction progresses on Atlassian Central, a 38-storey high rise that is anchoring Sydney’s burgeoning technology district.
The office tower, located next to Sydney’s Central Station, is zoned for mixed use, allowing parts of it to be rented out to other businesses.