Software maker Atlassian has laid off 252 employees at its San Francisco headquarters at 350 Bush Street, part of a global plan to eliminate roughly 1,600 roles as the company leans harder into artificial intelligence and enterprise sales.
In a company blog post, CEO Mike Cannon-Brookes described the cuts as incredibly difficult and said the changes are intended to self-fund further investment in AI and enterprise sales. He stressed that our approach is not “AI replaces people,” casting the move instead as a reshaping of the workforce so the company can move faster. Atlassian published his memo last Wednesday.
Scale and cost of the restructuring
According to the company’s Form 8-K filing, the job cuts amount to about 10% of Atlassian’s global workforce. The company expects to record between $225 million and $236 million in restructuring charges, tied mainly to severance and office space reductions. Most of those cash costs are expected to land in the current fiscal period, according to the SEC filing.
Local impact in San Francisco
State filings indicate that 252 positions were cut at Atlassian’s San Francisco office at 350 Bush Street, with the local layoffs folded into the broader companywide restructuring plan. The San Francisco Chronicle reviewed the state documents and confirmed the San Francisco total.
Reaction and the wider tech trend
The move has quickly become part of a larger conversation about how tech firms are reorganizing around AI, profitability and big-ticket enterprise customers. Coverage in outlets such as The Guardian has noted ongoing debate over whether AI is truly driving these layoffs or simply speeding up longer-running efforts to slim down operations.
What Atlassian is offering to affected staff
Atlassian has laid out a separation package that includes a minimum of 16 weeks of pay, plus an additional week for each year of service, prorated FY26 bonuses, and six months of extended healthcare coverage for eligible workers. The company also pledged visa assistance and outplacement services. In a small nod to workplace culture, it said it would keep Slack channels open for a short time so departing teammates could say their goodbyes. These measures were detailed in the company’s March 11 staff update from Atlassian.
For San Francisco, the cuts are another reminder that the city’s tech core is still shifting as companies rework headcounts and office footprints around new AI-focused strategies. Local hiring trends and vendor relationships tied to Atlassian’s Bush Street presence are likely to get extra scrutiny in the weeks ahead.
