Atlassian Layoffs 2026: What’s Happening & Severance Rights in Canada

Atlassian is cutting approximately 10% of its workforce, or roughly 1,600 jobs, as the software giant continues to integrate artificial intelligence (AI) into its operations. (The Guardian)

For North America, a spokesperson confirmed that 640 positions are being eliminated. The specific number of Canadian roles affected remains unclear.

“Our approach is not ‘AI replaces people.’ But it would be disingenuous to pretend AI doesn’t change the mix of skills we need or the number of roles required in certain areas,” CEO Mike Cannon-Brookes said in a note to staff on March 11, 2026.

• SEE ALSO: Atlassian Axes 150 Jobs Amid AI Shift, CEO Defends $75M Jet Purchase

This page explains:

• What’s happening with Atlassian layoffs
• Whether a layoff at Atlassian is permanent
• How much severance Atlassian employees in Canada may be owed
• What to do before signing a severance offer

Is a Layoff at Atlassian Temporary or Permanent?

For non-unionized employees at Atlassian, a layoff is almost always treated as a termination without cause, even if the following language is used:

• “Restructuring”
• “Reorganization”
• “Transformation”
• “Temporary layoff”

Unless your employment contract explicitly allows for Atlassian to temporarily lay you off, the company can’t place you on indefinite layoff without terminating your employment — meaning they must provide full severance pay.

Severance Pay for Atlassian Staff

In Canada, non-unionized employees, including those at Atlassian, are often owed far more severance pay than what’s outlined in their initial offer.

Severance is based on common law entitlements, not just minimum standards. Factors include:

• Age
• Length of service
• Position and seniority
• Availability of comparable jobs

In many cases, Atlassian employees in Canada can be owed up to 24 months of compensation.

Severance may include:

• Base salary
• Continued benefits
• Bonus and incentive compensation
• Stock, equity, or RRSP contributions (where applicable)
• Vacation pay
• Other earned compensation

First offers often:

• Cover only minimum entitlements
• Exclude bonuses or incentives
• Impose short signing deadlines
• Undervalue long-service or senior employees

Severance Offers: Common Problems

Canadian employees affected by layoffs frequently report issues such as:

• Severance offers far below legal entitlements
• Missing or unclear compensation breakdowns
• Benefits cut off too early
• Bonuses excluded without justification
• “Temporary layoff” language used improperly
• Pressure to sign within 24–48 hours

Wrongful Dismissal and Atlassian Layoffs

A wrongful dismissal occurs when major employers, including Atlassian, fail to provide full severance required under common law.

You may have a claim if:

• Your severance offer is too low
• A termination clause isn’t enforceable
• You were pressured to accept your severance offer on the spot
• Bonuses or benefits were excluded from your severance package
• You were terminated while on medical, parental, or disability leave
• Atlassian labelled your termination a “temporary layoff” without contractual authority

Large-scale layoffs at Atlassian don’t reduce their legal obligations in Canada.

Laid Off at Atlassian? Next Steps

If you’ve been laid off at Atlassian:

1. Don’t sign your severance offer immediately
2. Gather your employment contract, bonus plans, and benefits information
3. Use the Severance Pay Calculator to double-check your entitlements
4. Keep records of your role, compensation, and length of service
5. Speak with an employment lawyer before agreeing to anything

Atlassian Layoffs: Frequently Asked Questions

How much severance can Atlassian employees receive?

Up to 24 months — depending on age, service, and position.

Are Atlassian layoffs permanent?

For non-unionized employees, yes. A layoff is typically a termination.

Does Atlassian have to include bonuses in severance?

Often yes — especially if bonuses were a regular part of compensation.

Can Atlassian terminate employees on leave?

This can raise serious wrongful dismissal and human rights issues.

Can employment lawyers represent unionized Atlassian staff?

No. Unionized employees at Atlassian must go through their union.

Lost Your Job? Get Help Now

If Atlassian has laid you off, or offered a severance/buyout package, don’t do anything before seeking legal advice.

Samfiru Tumarkin LLP, one of Canada’s most reviewed employment law firms, has helped more than 50,000 Canadians secure the compensation they’re legally entitled to.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and SHOULD NOT be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.