Receiving a layoff notice is easily one of the most heartbreaking experiences employees face in their careers, but worse still is when the notice feels impersonal and uncaring. The new reports around the Atlassian layoffs are nothing out of the ordinary—the company is letting go of 150 workers in order to replace them with investments elsewhere. What is unusual is Atlassian’s strategy to announce the layoffs with a pre-recorded video.
CEO and co-founder of Atlassian, Mike Cannon-Brookes, reportedly sent out a pre-recorded video titled “Restructuring the CSS Team: A Difficult Decision for Our Future,” and for many, the nature of the communication suggested the decision was far from difficult. The Atlassian CEO was set to receive some backlash over the AI firings already, however, the format of the announcement has further enraged employees and outsiders alike.
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Atlassian Layoffs Spark Up a Storm for a Myriad of Reasons
Atlassian just fired 150 employees in an effort to restructure the organization and realign resources with its plans for the future. This is HR talk for a greater investment in artificial intelligence. The Atlassian job cuts are reportedly centered around the organization’s customer support and service divisions, where a human connection is most needed in order to address the concerns of both current and potential clients.
Instead, Atlassian cofounder Scott Farquhar believes that switching to AI for call center staff roles is in the best interest of the company and the economy. He believes that this will make the department more productive and reduce the number of calls necessary, further reducing the need to hire more staff. “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,” he was quoted as saying to the Herald.
The backlash faced by the Atlassian CEO over the AI firings is not quite widespread as a large number of industry giants have paved the way for AI-based layoffs. The discussion around the pre-recorded layoff announcement, however, is growing.
Atlassian Fires 150 with a Pre-Recorded Video
To announce the layoffs, Atlassian CEO Mike Cannon-Brookes reportedly sent a video to employees on July 30. This is how employees learnt that not only were job cuts coming, but that some roles would be replaced by AI. Employees were informed they would receive an email within 15 minutes that would update them about their position at the organization. Is a pre-recorded video really the worst way to lay off employees?
In-person layoffs are traditionally seen as the most professional way to communicate with employees with regard to major changes occurring at an organization. Over the years, particularly during the COVID era, it became commonplace to conduct the layoffs online via Zoom or other similar platforms. With the distance between employers and employees growing, many are now finding out about job cuts over email or other impersonal means.
Worse still, many employees across industries have shown up to work or tried to log into their professional accounts only to find out that they have been cut off from the organization with no warning. That is perhaps the worst way to conduct layoffs, but it isn’t necessarily better to pick a less nefarious means and call it a day. Due to the sensitive nature of the decision being communicated, it is important for organizations to inform workers with as much empathy and grace as possible and provide them with the necessary resources to handle the announcement.
Layoffs Are Harsh, and the Communication Style Rarely Softens the Blow
Atlassian’s decision to conduct the layoffs via a pre-recorded video may seem callous, but it does put a face behind the decision better than an email or a notice on the message boards. To Atlassian’s credit, the organization is offering employees six months of pay, which should help them significantly as they begin to look for their next job. With any reorganization effort, support during the transition is of utmost importance, and this is one element that Atlassian gets right.
In 2025, getting laid off is bad news no matter how the news is delivered, as the job market isn’t flooded with opportunities for those who want to find work. Finding the right words to conduct a layoff can be hard, and there will always be room for criticism on what could have been done better. Messages of “regret” or sympathies being communicated to workers rarely feel authentic, especially when the cuts are made to increase investments in AI.
Still, this does not mean that employers should be brusque or callous while conducting job cuts. Empathy and professionalism are key no matter the circumstance, and a generous severance package can go a long way in maintaining goodwill, not just among the existing employees but those who are retained as well. Having an efficient system set up to help employees discuss their concerns and seek future employment opportunities elsewhere is what differentiates a good business from an inconsiderate one.
The reaction to Atlassian’s pre-recorded job cuts tells us that employees would prefer a face-to-face conversation or call in order to hear the news, which is useful knowledge for other organizations perfecting their layoff strategy. We’re likely to see more layoff horror stories emerge this year, and employers and HR teams should listen carefully to understand what not to do and what they can get right.
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