Atlassian Replaces 150 Jobs with AI, Sparking Controversy Over Layoff Method and CEO's Actions

Fired by video: Atlassian terminates 150 workers using pre-recorded video, sparking criticism

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. CEO Mike Cannon-Brookes broke the news of the terminations. 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."

CEO Lays Off 150 Employees, Tells Them They'll Largely Be Replaced With AI

Executives are stumbling over themselves to replace pesky and expensive human labor with AI. In the latest instance, the billionaire cofounder and CEO of software giant Atlassian Mike Cannon-Brookes announced that 150 people would be laid off, with some jobs being replaced with AI tech, outlets including Sky News report. According to the Sydney Morning Herald, the cuts affect customer service roles exposed to AI. Cannon-Brookes made the announcement over a video call from his home. Affected staffers are expected to be paid for the next six months, softening the blow a little. It's a sign of the times, though, as executives are looking to automate vast swathes of the job market with the help of AI. The tech industry, in particular, has been rocked by mass layoffs for years now as companies double down on multibillion-dollar investments in AI data center buildouts and poaching high-profile talent from their competitors. The news comes after OpenAI CEO Sam Altman warned that entire job categories -- including the customer support roles that took a hit at Atlassian -- could soon be wiped out by AI. "Now you call one of these things and AI answers," Altman told Federal Reserve vice-chair for supervision Michelle Bowman during a recent appearance. "It's like a super-smart, capable person. There's no phone tree, there's no transfers. It can do everything that any customer support agent at that company could do." Meanwhile, Atlassian's other billionaire cofounder, Scott Farquhar, defended the layoffs, telling reporters today that Australia's copyright laws should be revised so AI companies had free rein to mine data unobstructed. "If we make call centre staff more productive, people aren't going to call more [and] we'll probably need less call centre staff," Farqhuar said, as quoted by the Herald. "Some parts of our economy will grow significantly as AI makes them more productive, and some parts of our economy will shrink as we do that." In a company blog post a spokesperson highlighted to the newspaper, Atlassian pointed to its code of ethics, justifying its mass layoffs. "Our value of 'Build with Heart and Balance' is about making the hard, right decisions with passion, empathy, and care," the blog post reads. Cannon-Brookes already came under fire earlier this year after buying a personal jet for upwards of $75 million -- despite his climate advocacy and push for solar energy, Sky News reports. "I'm not denying I have a deep internal conflict on this," he wrote in a LinkedIn post back in March, arguing he needed his plane for "personal security" reasons.

Atlassian boss Mike Cannon-Brookes axes 150 jobs via AI, then defends his private jet in brutal video message

Atlassian layoffs 2025 AI job replacements latest news: Atlassian co-founder and billionaire CEO Mike Cannon-Brookes delivered a pre-recorded video message to staff this week announcing the company would cut 150 jobs as artificial intelligence would be taking over their place, as per a report. The message, sent Wednesday morning, featured the 45-year-old tech mogul casually dressed in a faded green hoodie, speaking from what appeared to be his home office, as per a Sky News report. In the video, Cannon-Brookes explained that some roles were being removed as part of the company's shift toward AI-driven efficiencies, according to the report. What made the moment more jarring for some employees, however, was the impersonal delivery. Impacted staff reportedly had to wait another 15 minutes after the video to learn whether they were among those being let go, only finding out via email about their fate, as reported by Sky News. In the hours that followed, affected employees were locked out of their laptops, according to the report. ALSO READ: Morgan Stanley just boosted Nvidia's target -- Here's why Blackwell chips are game-changers Atlassian has said that it will pay impacted staff for the next six months, as per the Sky News report. While the firm has not revealed which roles were affected, but the Sydney Morning Herald reported that the cuts affect customer service roles exposed to AI. This is the latest layoff that comes in the tech industry, which has increasingly conducted mass layoffs for years now as companies double down on multibillion-dollar investments in AI data center buildouts and poaching high-profile talent from their competitors, as reported by Futurism. Recently, even OpenAI CEO Sam Altman warned that entire job categories, including the customer support roles that took a hit at Atlassian, could soon be entirely taken over by AI, according to the report. ALSO READ: OpenAI CEO Sam Altman reveals which job roles will disappear soon -- Is yours on the AI hit list? Atlassian's workforce reduction has sparked backlash both within and outside the company, particularly given Cannon-Brookes' high personal wealth, estimated at $13.9 billion, and his controversial investments. The decision to cut jobs in favor of AI comes at a time when the CEO has been actively investing in renewable energy ventures, including an undersea cable project linking Darwin to Singapore to export solar energy, but his recent purchase has drawn sharp criticism was a gas-guzzling private jet in March, as per Sky News report. Back in March, Cannon-Brookes defended his controversial decision to buy a Bombardier 7500, a long-range jet that can cost upwards of $75 million, stating on LinkedIn that it allows him to be a "present dad" while running a global business, as reported by Sky News. He admitted the move raised ethical questions, saying, "I'm not denying I have a deep internal conflict on this," as quoted in the report. The CEO justified saying, "There's a couple of reasons I've purchased a plane. Personal security is the primary reason (an unfortunate reality of my world), but also so I can run a global business from Australia, and still be a constantly present dad," as quoted in the Sky News report. ALSO READ: Texas AI centers guzzle 463 million gallons, now residents are asked to cut back on showers The layoffs came just as Atlassian's other co-founder, Scott Farquhar, appeared at the National Press Club of Australia, praising AI as essential for the future, according to the report. Farquhar said, "Firstly, most people don't think about where their water or power comes from and people don't think about where AI comes from or where the AI they use on their phone comes from every day," adding, "There is a huge boom in creating data centres for the region and, beyond that, there is a huge boom in using AI for everyday life," as quoted in the Sky News report. He highlighted that, "Every person should be using AI daily for as many things as they can," adding, "Like any new technology, it will feel awkward to start with, but every businessperson, every business leader, every government leader and every bureaucrat should be using it," as quoted in the report. Why did Atlassian lay off 150 employees? Atlassian says the layoffs were due to a shift toward artificial intelligence, which is now able to handle some roles previously done by humans, especially in customer service. Will the laid-off employees get severance? Yes, Atlassian said it will continue paying affected employees for the next six months.

High-flying Atlassian CEO replaces 150 workers with AI

Atlassian's billionaire chief executive and co-founder Mike Cannon-Brookes has axed 150 jobs at the software giant in favour of new artificial intelligence (AI) technology. It is understood staff received a pre-recorded video from Mr Cannon-Brookes on Wednesday morning explaining that some of their jobs would soon be replaced by AI. In vision seen by SkyNews.com.au, the high-flying CEO is wearing a faded green hoodie while speaking from a home office as he announced the cuts. Mr Cannon-Brookes, 45, did not name who would be axed and impacted staff reportedly had to wait 15 minutes for an email about their fate. Staff impacted had their laptops blocked, but Atlassian are expected to pay impacted staff for the next six months. Mr Cannon-Brookes, who is worth an estimated $13.9 billion USD, has increasingly turned to investing his colossal wealth in eco-friendly projects, including an ambitious project to build an undersea cable between Darwin and Singapore to deliver solar-generated electricity. Despite his climate advocacy, the high-flying CEO recently went ahead with the controversial purchase of a gas-guzzling private jet. In March, the CEO defended his decision to purchase a Bombardier 7500, an aircraft believed to cost upwards of US$75m (AU$119.2m) and said the plane would allow him to be a "present dad". "I'm not denying I have a deep internal conflict on this," Mr Cannon-Brookes wrote on LinkedIn. "There's a couple of reasons I've purchased a plane. Personal security is the primary reason (an unfortunate reality of my world), but also so I can run a global business from Australia, and still be a constantly present dad." The brutal redundancies at Atlassian fall on the same day the firm's other co-founder Scott Farquhar publicly praised the benefits of AI during a National Press Club of Australia appearance. "Firstly, most people don't think about where their water or power comes from and people don't think about where AI comes from or where the AI they use on their phone comes from every day," he said on Wednesday. "There is a huge boom in creating data centres for the region and, beyond that, there is a huge boom in using AI for everyday life. "Every person should be using AI daily for as many things as they can. "Like any new technology, it will feel awkward to start with, but every businessperson, every business leader, every government leader and every bureaucrat should be using it."