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Atlassian to cut roughly 1,600 jobs in pivot to AI

https://www.reuters.com/technology/atlassian-lay-off-about-1600-people-pivot-ai-2026-03-11/
52•jp0d•2h ago

Comments

eek2121•2h ago
This is fine. I suspect many folks have been trying to get away from JIRA and related apps for a while now. chef's kiss
bastardoperator•1h ago
If a shop tells me they use Atlassian/Jira I see that as a big negative.
kace91•1h ago
[flagged]
jamesliudotcc•1h ago
The link is wrong. It should be https://www.reuters.com/technology/atlassian-lay-off-about-1...

@dang

TutleCpt•1h ago
Where are the most popular alternatives to Jira?
fsloth•1h ago
Linear is pretty nice IMO otoh have not experienced it at megacorp scale.
hlpn•1h ago
Linear is great
TutleCpt•1h ago
Thanks. Checking them out now https://linear.app.
tombert•1h ago
I don't know if it's "popular", but I use Clickup at work and I think it's generally fine. At least when I have used it it's less laggy and horrible than Jira.
antonymoose•1h ago
What do you need out of Jira? Most any firm I’ve worked for could replace it with Trello or any Kanban style tool in a heartbeat.
MikeNotThePope•1h ago
It's worth pointing out that Trello has been owned by Atlassian since 2017.
Retz4o4•1h ago
They own Trello.
kilroy123•1h ago
Linear
Spixel_•1h ago
Notion is nice
itomato•6m ago
Until you try to leave with your data.
computomatic•1h ago
Have you tried nothing at all? Had great success with this on a 150+ dev team. Much preferred to jira. Admittedly does require a different approach to work than a jira-centric team is going to be familiar with.
quicklime•1h ago
According to this survey, Linear: https://newsletter.pragmaticengineer.com/p/the-pragmatic-eng...
ipaddr•1h ago
Mantis is awesome
plagiarist•1h ago
I'm interested in OSS alternatives, even if not as popular.
lousken•1h ago
Redmine comes to mind? Or if you use jira for helpdesk then Request tracker
falcor84•32m ago
I like Clickup's way of allowing arbitrarily nested subtasks and easily promoting/demoting a task across levels, without having this hard distinction that Jira has between levels. I understand that some coporate managers like the rigidity, but in practice, it's just very hard to know the scope of a story early on, and I found this flexibility really valuable.
bamboozled•22m ago
Excel spreadsheets, because that's what every project manager ends up using to actually get work done.
tombert•1h ago
Please don't tell me that Jira is about to get even worse...

I don't understand the AI layoffs; there's always an infinite supply of new work that could be done. Instead of firing 1600 people, why not have all of them use AI to produce more stuff and outrun their competitors.

Presumably all their competitors also know about Claude as well, and a lot of these 1600 people will go work for them and use Claude.

Unless this is just regular layoffs, but they know if they brand it as "AI" their investors will eat it up.

verelo•1h ago
It's likely not all this, but i expect an element is: there is a meaningful number of people essentially refusing to work with AI.

Antidotal but I have spoken to friends at Google who are telling me many co-workers say "I tried it didn't work, ill do it myself" when really they just didn't try very hard at all.

piker•1h ago
That would be a stupid reason to fire someone when the jury is still out on the net productivity benefits of using AI to code at scale.
verelo•1h ago
Sure, but would that really surprise you?

Edit: that is to say, if you had a % of your workforce avoiding helping you explore a current trend (valuable or not tbd sure), I can see rational arguments around removing them from the team.

vips7L•1h ago
Does it matter how someone gets their work done as long as its done on time? Why does using a specific tool matter?
tombert•1h ago
To add to the speculation, it's possible that the people refusing to use it are working slower. Even if the code that they write is objectively better by any metric you'd like, humans can't really pump out code as fast as Claude or Codex can.

If you can get something into "good enough" territory in 1/10th the time of someone who can get it into "great" territory, that is often worth it.

nemomarx•1h ago
If everyone else is downsizing and using AI as an excuse, it's both a pretty good cover for any firing you might have wanted to do for a while, and you can reasonably assume you can hire back in the future because everyone else is firing too. Maybe you can even depress their wages a little?
siva7•1h ago
It's regular layoffs because of AI
alexpotato•1h ago
> there's always an infinite supply of new work that could be done

I distinctly remember a discussion where someone says "Man, I wish JIRA would add this feature/fix this bug"

Someone else pipes in: "I bet there is already a ticket on the JIRA bugtracker/feature board for this, it's not done and it's from 9 years ago" and lo and behold there was.

ryandrake•1h ago
Unfortunately, none of these companies are going to turn their AI loose on important, annoying, 9 year old bugs. They're just going to use it to cram more unwanted features into their software, just like they're doing today with human developers.
bombcar•1h ago
It is just regular layoffs, and doing so admits they don't know what to do with the 1,600 people anyway, and probably didn't know what to do with them for years.

AI isn't going to help, but it bandaids over the issue so the investors aren't spooked.

tombert•1h ago
That's kind of what I was getting at.

Laying thousands of people off often implies you hired thousands of more people than you actually needed, which makes investors feel like you're wasting their money. If you say "no they're all being replaced for $200/month of Claude Code!" then it makes you look like there was actually strategy to this.

Sol-•1h ago
> there's always an infinite supply of new work that could be done

I definitely buy this for the software sector or the economy as a whole, but for an individual company? Seems one would be bottlenecked by various factors quickly.

Perhaps better to let people go so that they can be productive elsewhere?

tombert•1h ago
There's always bugs that can be fixed, there's always optimizations that can be done, there's always a feature that someone wants to build but hasn't had budget to do. There's always improvements that can be done for deployment. There's always ways of reducing memory. There's always ways of reducing ongoing expenses etc.

I have worked for a bunch of companies, and even relatively new and young companies have all these things pile up pretty quickly.

jkubicek•1h ago
Jira takes a measurable amount of time to make bulk-changes to a single ticket, which is insane. If they’re going to fix anything, fix that.
Avicebron•1h ago
> Perhaps better to let people go so that they can be productive elsewhere?

True. Joining thousands of other unemployed developers sending applications into a job posting for a nonexistent role online is very productive. Probably good for the economy too now that I think about it.

icedchai•1h ago
Have you tried looking for a job recently? The job market is cooked and it's not getting better any time soon. The supply of candidates is way up. Salaries are going down. Even mediocre jobs show 100+ applicants on LinkedIn.
carefree-bob•1h ago
I think with fewer people working on it, the rate at which it gets worse will now decline!
bartread•1h ago
> Instead of firing 1600 people, why not have all of them use AI to produce more stuff and outrun their competitors.

Alternative take: I can't speak for BitBucket because I've never used it, but I've had enough time with JIRA and Confluence to last a lifetime, and these products are so bad - so clunky, so slow, so much friction in the UI - that I can't really see what useful value adding work Atlassian's 16,000 employees have actually been delivering. From that perspective losing 1600 of them seems like it's not likely to make much difference since, from my perspective as a user, they didn't appear to be doing anything useful in the first place.

I'm sorry if that comes across as a particularly savage take but Atlassian have wilfully been churning out absolute garbage for at least 15 years now (there was a time, in around 2006/7, when I thought JIRA was quite good - genuinely) and their products have made me miserable throughout a good chunk of my career, so my sympathy is pretty limited. If they can be bothered to make the products better, faster, more usable, and remove friction ruthlessly at every turn in their workflows, then I might well change my point of view.

tombert•1h ago
I haven't used BitBucket in awhile but I remember it being "not that bad".

I agree with pretty much everything you said; I don't actually think that it's due to AI is my point. If their products are terrible and they're finally losing business over it, it makes enough sense to fire 10% of the workforce. I just don't think AI has much to do with it.

quicklime•1h ago
It’s not that their employees are no longer needed, it’s that their product (jira) is no longer needed. When you’ve got AI agents taking bigger and bigger steps, you don’t need to micromanage people through jira as much anymore. Companies will likely switch to something lighter.

Jira regularly makes it to the top of lists of the most hated enterprise software, there’s definitely appetite in the market for a replacement.

Their stock has been taking a huge hit over the last few months because of this: https://www.smh.com.au/business/companies/ai-is-eating-softw...

mvdtnz•1h ago
This is developer wishcasting, to be frank. AI has not obviated the need for Jira and the idea that companies are moving to "something lighter" (what are they moving to?) has no basis in reality.
quicklime•1h ago
Maybe you’re right, maybe you’re not. But if you’re right i think it’s more “investor wishcasting” than developers.

It really doesn’t matter what us devs think. Investors and industry leaders have decided that AI development is the way forward and we’re going to be managing teams of agents from now on. So we’re not going back to fine-grained task management in jira - what used to live in jira will now live markdown files, and largely be written and read by agents.

Higher level tasks might go into something like Linear, who knows.

If the investors are wrong, and this is all fantasy, then maybe people will go back to Jira, and Atlassian stocks will recover.

neal_jones•55m ago
I don’t know about established companies pivoting but new operations/projects don’t seem to default to Jira like they did previously. In my very non-scientific sample size, I’ve noticed a shift in the last 3-6 months
stego-tech•1h ago
The comments hit at some, but not all, of the underlying drivers. I'll add a more comprehensive view and let you draw your own conclusions:

* Their balance sheet paints a messy picture. Their gross profit per quarter doubled from 23Q1 ($668mn) to 26Q2 ($1.35bn), but their net income has been a consistent loss - from -$13mn in 23Q1, to -$42.6mn in 26Q2. The company has generally failed to turn a meaningful profit after considering operating expenses, reflecting misaligned priorities of leadership.

* Their headcount similarly whipsaws of late. In 2021, it was 8.8k; by 2025, it was 13.8k; in the middle of COVID, it was as low as 6.4k. Even after these job cuts, their headcount remains roughly flat from 2025.

* Cutting jobs to invest in AI when you're already slowly bleeding cash isn't exactly a winning strategy. Atlassian's products have the benefit of organizational "stickiness", and their push to a cloud-only SaaS model hasn't gone all that well if you read the IT rags (lots of uniquely complicated migrations that don't transition well 1:1 to SaaS).

* That said, pointing to AI while cutting jobs isn't a bad play when you're courting investors, many of whom doubt the long-term viability of the XaaS model when AI can slop up boilerplate and internal-only solutions on the fly. If they're doing it to genuinely cut costs and try and right the ship, fingering AI isn't a bad cover.

* Except the reality is most of Atlassian's leadership gets their comp in equity, which has taken a serious hit of late on the markets just as vesting schedules wind down and leadership is changing over. I'd be on the lookout for SEC Form 4's from insiders in the coming weeks to confirm whether or not this was the case.

The reality is that the "AI layoffs" ploy is almost exclusively a cover story for corporations reasserting dominance and power over workers after a few (comparatively) good years (WFH, higher pay increases, wage gains, flex-time, etc). Every single one of these entities obviously has more work than people to do it, but if they can squeeze 90% of the workforce for 110% of the hours, that's a net gain for the corporation and a net loss for workers.

Efficiency, over-hiring, right-sizing, AI; it's all bullshit smokescreens for greed, plain and simple. Don't be fooled by narratives to the contrary.

jemmyw•2m ago
I don't think it can get worse. In fact, it'd probably be better if Atlassian just stopped touching it.
stego-tech•1h ago
Welp. Fuck Atlassian. Their resistance towards arbitrary RTO mandates and a people-first culture had me tolerate the weirdness of JIRA and Confluence, but now?

Fuck ‘em. Rolling my own using shelfware, kthxbai.

heohk•1h ago
What does the "incur $230 million in charges" mean? Why would it cost them money to lay people off and have less office space?

Possibly a bad LLM edit; maybe they meant to say would save $230 million through reduced headcount and less office space?

piker•1h ago
A charitable take would be that some of that is attributable to benefits packages to help the people transition to new work?
arthurcolle•1h ago
possibly the spending required to do all the severances
natnat•1h ago
It's the severance cost, mostly.
bombcar•1h ago
Usually layoffs have a one-time charge associated with closures and severance and other such payments (COBRA?).

But $230 million over 1,600 is $145k per person.

twoodfin•1h ago
I’d guess some of that is accounting for taxes on profit they’ll now have to pay that otherwise would have been deductible if spent on salaries for R&D?
robryan•1h ago
Block reportedly handed out a bunch of incentives to the people staying, could be similar to that.
icedchai•1h ago
"Charges" are severance and related benefits. If they have to close offices, they may have to break leases, etc.
bmac•1h ago
One time charges are pretty typical when layoffs are announced. They are usually the cost of severance pay for the weeks or months of salary paid to employees who are no longer working. Office space leases are typically long term (multiple years) and accounting rules require they recognize the expected future cost of that now-useless space when the layoff decision is made. In practice, cash won't actually change hands for the office space until rent is due in future months. And companies will work with the landlord to get out of the lease (but often pay some penalty for the privilege).
jbl0ndie•1h ago
Possibly not. Buying yourself out of employment and commercial rental contracts can give rise to costs.

In the UK, statutory redundancy pay, after 2 years of service, is 1 week of pay per year of service and 1.5 weeks if you're over 41.

For a long duration commercial lease it might be worth paying to break the contract rather than the running costs for an unused building.

These are probably short-term costs, with longer term savings projected from the reduction in headcount and premises.

elzbardico•38m ago
Also, please note that maybe not all employees on this layoff are US-based.

In several countries, laying off people come with legal requirements for mandatory minimal severance, health insurance extensions, legal taxes and government fees and all kind of compensatory one-time payments for the fired employeer.

tigerlily•1h ago
The Druuge Mauler chugs on.
cheriot•1h ago
Does Atlassian still have the tech debt that lead to extended outages? https://newsletter.pragmaticengineer.com/p/scoop-atlassian
alexpotato•1h ago
Chartr Daily had this chart [0] back in 2023 and it shows how much the big tech firms grew from 2016 to 2022.

Some of the firms, Apple being the exception, doubled or even almost tripled in size.

I'm sure AI is partly to blame here but I think a lot of it is over hiring and firms just getting bogged down in bureaucracy and trying to clear things out.

0 - https://www.instagram.com/p/CnxN-Mayo3N/

MeetingsBrowser•1h ago
I don't think AI is even partially to blame. Unless Atlassian is claiming AI can fully replace 1,600 workers, layoffs don't make sense.

You need people driving AI to get the benefits.

Its like a courier service that uses horses firing people once cars are invented because cars are faster than horses. You would switch everyone from horses to cars and deliver more packages.

mjfisher•1h ago
Can anyone recommend good alternatives to Jira? Things that keep me defaulting to it:

- Scales well from simple configuration and workflows to more complex multiboard views/custom fields/layouts per issue type etc

- Good OOTB integration with common CI/CD - see PRs, deploys etc from each ticket

- Good (adequate?) integration with their wiki in Confluence

- JQL for being able to do custom reporting tooling (get me all issues transitioned to X status in this time period)

Things that frustrate me:

- Complexity/UI around configuration

- Very poor kanban metrics reporting

esskay•1h ago
Notepad.

Seriously, you need a heck of a lot more than a random HN reply to give you Jira alternatives if you've been embedded into its ecosystem for any length of time - and my condolences if you have.

mjfisher•1h ago
It's fine, just not stellar. It was terrible (UX, speed, consistency) ten years ago. It's better now - mostly gets out of people's way and just works. It doesn't delight me.
p0u4a•1h ago
Linear
lousken•1h ago
We've switched to Jetbrains Youtrack, it doesn't have as many features, but turns out nobody was using most of them anyway. It's Jira + Confluence bundled together including SSO.
gnulinux996•1h ago
My reading is they are _announcing_ the job cuts to keep the stock from tumbling.

I don't think any AI productivity gains are involved.

lousken•1h ago
Should've sent those 1600 people to fix their horrible performance of cloud apps, oh well I guess opening a jira ticket will now take not 5 but 10 seconds.
MeetingsBrowser•1h ago
Layoffs because of AI make no sense to me.

Imagine you own a company that is paid to deliver packages. You use horses and differentiate by delivering quicker than everyone else.

Then cars are invented and everyone starts delivering packages faster.

In what world does a healthy growing business react to this by laying off couriers "in a pivot to automotive transportation".

Would a healthy business not switch everyone to driving cars and deliver even more packages?

falcor84•36m ago
You need a very different skill set and culture for driving and maintaining cars than for driving and maintaining horses. I honestly think that for big changes like this (if you are willing to accept that AI is such), looking at it from the portfolio management angle, it makes more sense to just nuke the current operation and start a greenfield one.
itomato•7m ago
They just announced GA of agentic assignees. It suggests a year or more of maturation. Rovo Dev has already been a thing.

The Java products are almost EOL.

They have already been assigning JAC tickets to Rovo and $TEAM is down.

What else should be done with the surplus headcount?

the_real_cher•1h ago
Ironically you can actually use AI to replace Jira.
elzbardico•45m ago
Atlassian is cutting another 1600 jobs because it needs to cut more jobs as it is a dying company with terrible products.

But let's try to spin it up as if we were some kind of AI mavens who are reaping humongous increases in productivity due to our thought leadership in AI.

rvz•12m ago
This is AGI.

Show HN: I built an open harness that excels at autonomous ML research

https://github.com/snoglobe/helios
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AI should help us produce better code

https://simonwillison.net/guides/agentic-engineering-patterns/better-code/
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SmallClaw: Local-first AI agent framework built for small models

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Why isn't vibe coding creating more shareware?

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Divine-OS – Persistent Identity Layer for AI Agents

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https://www.theverge.com/ai-artificial-intelligence/767973/vibe-coding-ai-future-end-evolution
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https://github.com/IvY-Rsearch/wire
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https://github.com/ChangweiZhou/digitalbaby
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