The Australian productivity software firm Atlassian implemented layoffs as it aims to invest more resources into AI.

On March 11, Atlassian revealed it will reduce its workforce by 10%, which equates to approximately 1,600 individuals. The organization stated that this move enables increased investment in AI, enterprise sales, and financial fortification.

Specifically, Atlassian indicated that while it is performing well, it is opting to adjust to prevailing market conditions.

“The expectations for what defines ‘great’ in software companies — regarding growth, profitability, speed, and value creation — have risen,” Atlassian’s CEO Mike Cannon-Brooks noted in a press release concerning the layoffs.

TechCrunch contacted Atlassian for further details on which specific roles were affected and the next steps moving forward.

This announcement follows closely on the heels of a similar, though more severe, proclamation from Block CEO Jack Dorsey. In February, the payments firm declared that it was eliminating over 4,000 jobs, nearly 50% of its workforce of 10,000 at that time.

Dorsey explained that the layoffs were influenced by the potential of AI to automate many tasks previously handled by these workers and anticipated that numerous other businesses would reach this same realization.

A number of enterprise-focused venture capitalists predicted to TechCrunch that 2026 would mark the beginning of AI making a significant impact on labor.

Thus far, their prediction has materialized.