@dang
I work on Aha! Develop https://www.aha.io/develop/overview which I obviously think is a great tool, especially if you're a team with a product manager.
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.
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.
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.
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.
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.
AI isn't going to help, but it bandaids over the issue so the investors aren't spooked.
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.
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?
I have worked for a bunch of companies, and even relatively new and young companies have all these things pile up pretty quickly.
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.
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.
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.
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...
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.
* 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.
Fuck ‘em. Rolling my own using shelfware, kthxbai.
Possibly a bad LLM edit; maybe they meant to say would save $230 million through reduced headcount and less office space?
But $230 million over 1,600 is $145k per person.
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.
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.
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.
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.
- 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
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.
I don't think any AI productivity gains are involved.
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?
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?
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.
- CEO (under pressure to move in the AI space) comes across as an AI maven
- The shareholders improve margins
I think we're reeling from rate increases. Too much free money for too long.
It is a great excuse for underperforming and incompetent CEOs.
It provides the CEO with a wonderful excuse for sacking people.
eek2121•2h ago
bastardoperator•1h ago