Atlassian fires 150 employees via pre-recorded video, drawing criticism

Atlassian laid off 150 employees using a pre-recorded video, drawing criticism.

: Atlassian recently executed a major restructuring, laying off 150 employees through a controversial pre-recorded video announcement from CEO Mike Cannon-Brookes. This method of communication was criticized for being impersonal, undermining the company's values of direct dialogue. Experts and industry leaders denounced the approach as lacking compassion, stirring debates on appropriate practices for layoffs. The announcement noted that many roles would be replaced by AI, illustrating the impact of automation on the workforce.

Atlassian, a renowned Australian software company, has come under fire after laying off 150 employees using a pre-recorded video message from its CEO, Mike Cannon-Brookes, dated July 30, 2025. The choice of medium has sparked considerable backlash due to its impersonal nature. This incident highlights broader concerns within the industry about how layoffs are being handled in the age of digital communication and automation technologies like Artificial Intelligence (AI).

The video, entitled 'Restructuring the CSS Team: A Difficult Decision for Our Future,' was not accompanied by immediate details about the affected employees' statuses. Instead, the employees were informed to wait for an email notification regarding their employment, which was coupled with the disabling of their company laptops.

According to media reports, those laid off will receive severance pay equivalent to six months of their salaries. The decision was particularly criticized due to Atlassian's promotion of direct communication as a company value, with many stating this approach contradicts those principles. Olive Turon, Head of People and Culture at TestGorilla, is quoted as emphasizing the need for communication to be clear and compassionate, followed by sincere support for those impacted.

Legal experts, such as Matthew Ottley, have raised concerns that such methods might breach employment laws, especially in regions like the UK, which require a fair and reasonable process for redundancies. Despite the controversy, Atlassian plans to replace many of these roles with AI, aligning with broader trends in the tech sector aimed at increasing efficiency through automation.

Amid the restructuring news, Atlassian has continued to advocate for AI's role in transforming business processes, illustrating the company's commitment to integrating AI into its operations despite challenges. On the day of the announcement, former co-CEO Scott Farquhar appeared on Australian media, promoting AI's potential to revolutionize the nation’s economy.

Sources: TechSpot, Cyber Daily, HR Magazine

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