Additional Coverage:
- Atlassian’s CEO spelled out 3 types of employees spared in his layoffs — and it’s good news for graduates (businessinsider.com)
Atlassian Cuts 1,600 Jobs, But New Grads Get a Surprising Vote of Confidence Amid AI Push
SAN FRANCISCO, CA – In a move that’s shaking up the tech world, software giant Atlassian announced it’s laying off approximately 1,600 employees, roughly 10% of its global workforce. However, amidst the cuts, CEO Mike Cannon-Brookes offered a surprising glimmer of hope for recent graduates, signaling their continued value in a rapidly evolving, AI-centric job market.
The company stated that these layoffs are part of a strategic shift to fund its ambitious artificial intelligence initiatives. In a public message to employees, Cannon-Brookes detailed the types of workers the company aimed to retain: “Guided by company-wide principles and a disparate impact analysis, we made some structural org changes and focused on retaining Atlassians with the skills to help us thrive as an AI-first company – this included strong performers, graduates, and Atlassians with transferable skills.”
While the retention of high performers and those with adaptable skills is hardly unexpected, the explicit inclusion of recent graduates stands in stark contrast to a growing narrative suggesting that entry-level workers are particularly vulnerable to the rise of AI. Studies have indicated that early-career professionals in AI-exposed fields have experienced employment declines, and some industry leaders have even predicted that AI could eliminate a significant portion of entry-level white-collar jobs in the coming years.
Atlassian’s stance, however, appears to buck this trend. Last October, Cannon-Brookes had already indicated the company’s commitment to hiring new graduates, citing the need for fresh perspectives in its research and development and engineering teams.
He expressed confidence that these graduates could “shake up the existing world of talent in a positive way.” The company reportedly hired 95 new grads for its February 2025 intake and 108 for February 2026.
Though the CEO’s recent letter didn’t elaborate on the specific reasons for prioritizing graduates during these layoffs, potential explanations include their perceived “AI native” skills, the ability to leverage AI tools for increased productivity, or simply the value of their fresh viewpoints. And, of course, the economic factor of lower salaries for entry-level positions cannot be entirely overlooked.
This move by Atlassian could offer a new perspective for recent graduates navigating a challenging job market, suggesting that some tech leaders still see immense long-term potential in nurturing nascent talent, even as AI reshapes the landscape of work.