Atlassian cuts 150+ roles through pre-recorded video amid AI push

Atlassian, the Australian software company behind workplace tools like Jira, Confluence, and Trello, has come under fire after laying off over 150 employees via a pre-recorded video message, citing the company’s integration of artificial intelligence (AI) as the key reason for the job cuts.

In the video, co-founder Mike Cannon-Brookes said the layoffs were necessary to align the company’s workforce with its growing use of AI, particularly in customer support and operations roles. However, the impersonal delivery of the message and the timing of a luxury private jet purchase by the billionaire entrepreneur have drawn criticism from employees, industry watchers, and the wider public.

The decision to notify employees through a pre-recorded video, followed by a 15-minute wait for email confirmations and immediate laptop lockouts, has been widely condemned. Several affected employees have shared their experiences anonymously on social media platforms like Reddit and LinkedIn, calling the process cold and dehumanising.

As reported by CNBC and The Verge, the company has offered six months of severance pay to those impacted. However, that hasn’t stemmed the backlash, with critics arguing that the mode of communication failed to respect the dignity of long-serving employees.

“Being told you're no longer part of the company by a video, with no opportunity to ask questions or talk to a human, is as disheartening as it gets,” wrote one former employee on LinkedIn.

CEO under fire for luxury jet purchase

The controversy escalated after it was revealed that Cannon-Brookes had recently acquired a Bombardier Global 7500 private jet worth $75 million, around the same time the layoffs were being rolled out. With a personal net worth of $13.9 billion (as per Bloomberg Billionaires Index), Cannon-Brookes defended the purchase in a LinkedIn post, calling the jet a "tool" that helps him be a “present dad” while leading a global company.

He also cited personal security and operational efficiency as reasons for the acquisition, acknowledging the ethical concerns but justifying it as necessary for his lifestyle and work commitments.

The juxtaposition of mass job cuts with such a lavish personal expense has drawn accusations of hypocrisy and tone-deaf leadership, especially in a year marked by widespread layoffs across the tech sector.

AI at the heart of restructuring

Atlassian’s leadership has been vocal about its plans to incorporate AI into its products and operations. Co-founder Scott Farquhar, who recently stepped back from day-to-day operations, reaffirmed his belief in the transformational power of AI, calling it “crucial for the future” and urging leaders to integrate AI into their daily workflows.

In recent months, Atlassian has launched a series of AI-powered productivity features, positioning itself as a future-ready enterprise platform. The job reductions, according to company insiders, are part of a broader realignment of skills and functions, making way for automation and digital optimisation.

The Atlassian layoffs raise broader questions about the ethics of automation, leadership accountability, and how companies communicate during difficult transitions. As AI becomes more embedded in enterprise systems, observers are calling for clearer frameworks around workforce impact and humane exit practices.

For now, Atlassian has not indicated any plans to reverse its decisions or offer additional support beyond severance. But the backlash may force a rethink—not only at Atlassian but across the tech sector—on how companies manage the human side of digital transformation.