Atlassian Cuts 150 Jobs, Faces Backlash for Impersonal Layoffs

Australian software company Atlassian has made the difficult decision to lay off 150 employees as part of a significant restructuring of its customer support and services team. This announcement, made via a pre-recorded video message from CEO and co-founder Mike Cannon-Brookes on July 30, 2023, has drawn widespread criticism for its impersonal approach, highlighting ongoing concerns surrounding the treatment of employees during layoffs in the technology sector.

In the video, titled “Restructuring the CSS Team: A Difficult Decision for Our Future,” affected employees were not informed of their job status until 15 minutes after the video was broadcast. Following the message, staff members discovered that their company laptops had been disabled. Reports indicate that those whose positions were terminated will receive a severance package equivalent to six months’ salary.

The method of notification has sparked backlash, particularly given Atlassian’s previous emphasis on transparency and direct communication. Critics argue that such impersonal communication fails to acknowledge the emotional and financial impact of job loss. Olive Turon, Head of People and Culture at TestGorilla, emphasized the need for clear and compassionate communication during layoffs, stating, “One-size-fits-all comms simply won’t cut it when people’s livelihoods are on the line.”

Legal experts have also weighed in on the implications of this approach. Matthew Ottley, an employment solicitor at SAS Daniels LLP, noted that delivering redundancy notifications through a pre-recorded message may be viewed as impersonal and could raise legal concerns regarding employment law, particularly in the UK, where a fair process is expected.

Although Atlassian has not specified which regions were most affected by the layoffs, media reports suggest that the workforce in Europe bore a significant burden. Cannon-Brookes acknowledged the complexities involved in terminating European employees due to contractual arrangements but stated that the company was moving forward with its restructuring plan.

As the company navigates these staffing cuts, it continues to expand its use of artificial intelligence within its operations. Atlassian has integrated AI technologies into its customer contact solutions, reflecting a broader trend in the tech industry towards automation. On the same day as the layoffs, co-founder Scott Farquhar appeared on Australian media, discussing the transformative potential of AI for the economy, asserting that “AI is going to change Australia” and encouraging individuals to adopt AI technologies in their daily lives.

The recent layoffs and the manner in which they were communicated have reignited discussions about best practices for managing redundancies in the technology sector. As companies like Atlassian increasingly rely on AI, the human element in employment decisions may become a critical factor for maintaining employee trust and morale.