The company said it is reducing its headcount by 20%, or about 630 staff, to "support a leaner, more focused operating model" as it focuses on its AI Work Platform.

Microsoft cut around 4,800 roles, or 2.1% of its global workforce, on Monday — the latest in a series of layoffs that’s stoking fears of AI replacing jobs. The layoffs will hit Xbox and commercial sales the hardest.

In a memo to employees, CEO Sasan Goodarzi said the layoffs are meant to reduce complexity, simplify the company's corporate structure, and deliver better AI products.

Atlassian laid off 10% of its workforce, around 1,600 people, as the company looks to funnel more funds to AI.