It happened on a Wednesday morning. Thousands of Atlassian employees logged on, probably expecting the usual mid-week grind, only to find a video waiting for them. It wasn't a live town hall. There was no Q&A box. Just Mike Cannon-Brookes, billionaire co-founder and CEO, wearing a faded green hoodie in what looked like his home office. In that video, he dropped the hammer: 150 people were being let go.
The reaction was instant and, honestly, pretty brutal.
People were pissed. Not just because of the job losses—though that’s always a gut punch—but because of how it was done. A pre-recorded video. It felt like being dumped via a YouTube link. While the world watched and cringed, the Atlassian CEO defends using a pre-recorded video to announce redundancies as a strategic necessity, even as he was simultaneously defending the purchase of a $75 million private jet. The optics? Not great.
The 15-Minute Waiting Room from Hell
Imagine watching that video. Mike tells you the company is "restructuring" the Customer Support and Services (CSS) team because of "AI-driven efficiencies." He says it’s a "difficult decision for our future." But here’s the kicker: the video didn't actually say who was fired.
Instead, everyone was told to sit tight.
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For 15 long, agonizing minutes, staff sat at their desks waiting for an email to land. If you got the email, you were out. Within hours, those affected were locked out of their laptops. It was efficient. It was swift. And to many, it felt completely soulless. This isn't the first time Atlassian has done this, either. Back in March 2023, they cut 500 people, or about 5% of their workforce, in a move they called "rebalancing." That time, they gave people a bit more of a "graceful" exit, but the 15-minute email window seems to have become their signature move.
Why Mike Cannon-Brookes Thinks He’s Right
So, why do it this way? If you ask the higher-ups, they’ll tell you it’s about consistency. They argue that a pre-recorded message ensures every single employee gets the exact same information at the exact same time. No leaks. No rumors. No half-baked explanations from middle managers who don't have the full picture.
Basically, they’re choosing "fairness in information" over "humanity in delivery."
Atlassian’s other co-founder, Scott Farquhar—who recently stepped back from the co-CEO role but still looms large—doubled down on the AI angle. Speaking at the National Press Club on the very same day as the 2025 layoffs, Farquhar was all-in on the "AI will change everything" narrative. He basically told the room that if AI makes call center staff more productive, you simply need fewer people. It’s cold math.
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The Private Jet Problem
You can't talk about this without mentioning the jet. While 150 people were mourning their careers, news was swirling about Cannon-Brookes’ new Bombardier Global 7500. It’s a $75 million piece of machinery.
The internet, being the internet, went nuclear.
Cannon-Brookes took to LinkedIn to defend the purchase, calling it a "tool" that lets him be a "present dad" while running a global empire. He even admitted to a "deep internal conflict" because of his climate activism. But for a guy who once famously told people they could work from anywhere—the "Team Anywhere" policy—to then fire people via a home-office video while sitting on a billion-dollar fortune... well, the "Build with Heart and Balance" company value started to feel a bit hollow to those on the receiving end.
The European Legal Headache
One thing the CEO mentioned in the video was that it would be "difficult" to axe European staff due to their pesky labor laws. Europe doesn't really do the whole "you're fired via email, goodbye" thing as easily as the US or Australia. In the UK and many EU countries, there are strict consultation periods.
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Matthew Ottley, an employment solicitor, pointed out that this "video dismissal" approach is legally risky. In the UK, you have to follow a "fair and reasonable" process. Sending a mass video and then locking someone's laptop 15 minutes later? That’s basically an invitation for a lawsuit in London or Paris.
What This Means for You
If you’re a leader, or even just someone who works in tech, this is a massive case study in what not to do if you care about your employer brand. Atlassian used to be the "cool" company. The "no bullshit" company. Now, they're the company that fires you while the boss wears a hoodie and talks about AI productivity.
If you ever find yourself in a position where you have to deliver bad news, here’s how to avoid an "Atlassian-level" PR disaster:
- Prioritize the Human: If you can’t do it face-to-face, do it live. Give people the chance to ask questions, even if the answers are "I don't know yet."
- Don't Hide Behind Tech: Using a pre-recorded video is conflict avoidance. It's easier for the CEO, but it's 10x harder for the employee.
- Watch the Timing: Don't brag about your new $75 million jet or give a keynote about the "glories of AI" on the same day you're taking away people's livelihoods.
- The 15-Minute Rule is Cruel: If you have to send an email, send it the second the meeting or video ends. Don't make people sweat in a digital waiting room.
The reality is that AI is changing roles. Customer support is on the front lines of that shift. But as the Atlassian CEO defends using a pre-recorded video to announce redundancies, the tech world is learning a hard lesson: just because you can automate a termination doesn't mean you should. Efficiency is great for code, but it's usually pretty terrible for people.
If you're worried about your own role in an AI-heavy world, the best move right now is to lean into the things AI can't do well: complex empathy, cross-functional strategy, and deep relationship management. Machines can handle the "how," but humans still need to explain the "why."