Cutting corners: Receiving a layoff notice is always hard, but the way the message is delivered can make the experience even more painful. The latest example: Atlassian’s termination notification to 150 employees through a pre-recorded video. The restructuring not only highlights concerns about impersonal layoff announcements but also reflects the increasing influence of AI on jobs in the technology industry.
Australian software giant Atlassian has eliminated 150 jobs as part of a major restructuring of its customer support and services team. The announcement was delivered via a pre-recorded message from CEO and co-founder Mike Cannon-Brookes to employees on the morning of July 30, with many roles reportedly to be replaced by artificial intelligence systems.
The video, titled “Restructuring the CSS Team: A Difficult Decision for Our Future,” did not disclose the identities of those affected or immediately provide details about individual employment status. Instead, employees were instructed to wait an additional 15 minutes for an email notification about their positions, after which, affected staff found their company laptops had been disabled. According to reports, those whose positions were terminated will receive six months’ salary as severance.
The decision to announce the layoffs through a pre-recorded video has been sharply criticized for its impersonal approach, especially at a company that has long promoted values of direct communication and transparency. The timing and method of delivery left many employees unprepared, reigniting discussions about best practices for managing redundancies in the tech industry.
“One-size-fits-all comms simply won’t cut it when people’s livelihoods are on the line,” Olive Turon, Head of People and Culture for TestGorilla, told HR Magazine, adding that for difficult decisions to be accepted, communication should be clear, compassionate, and followed by meaningful support for those affected.
Legal experts have also weighed in on the approach taken. Matthew Ottley, employment solicitor at SAS Daniels LLP, explained to HR Magazine that delivering redundancy notices via a pre-recorded message or text may be considered impersonal and risky in terms of employment law, particularly in the UK, where employers are expected to follow a fair and reasonable process.
While Atlassian has not publicly disclosed which global regions were most affected, media reports have suggested Europe’s workforce was heavily impacted. In the video, Cannon-Brookes referred to the complexities of terminating European staff due to contractual arrangements, but stated that the company was nonetheless proceeding in that direction.
Amid the staffing cuts, Atlassian continues to expand its use of AI in business operations. The company has embedded AI technologies in its customer contact solutions, a move in line with the broader shift in the technology sector toward automation. While co-founder Mike Cannon-Brookes broke the news of the layoffs, former co-CEO Scott Farquhar appeared on Australian media on the same day promoting the transformative potential of AI for the nation’s economy, saying, “AI is going to change Australia,” and adding, “Every person should be using AI daily for as many things as they can.”
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