Tech firm Atlassian axes 150 staff over video, says they won't be replaced by AI
Billionaire CEO and founder Mike Cannon-Brookes appeared in a pre-recorded video to staff, announcing 150 of them – including 44 in Australia – would be losing their jobs.
Cannon-Brookes appeared dressed in a hoodie and speaking from his home office in the video - which was titled 'Restructuring the CSS Team: A Difficult Decision for Our Future' - in an address some staff felt was 'frank and cold'.
Reports from staff claimed termination emails arrived for the unlucky staff 15 minutes later, as their laptops were blocked from company systems.
The cuts are understood to be to customer service roles, with Atlassian claiming improvements to its systems meant there would be fewer complaints to deal with.
A statement from the Sydney-based tech firm said the 'roles are not being replaced by AI'.
'We made this decision after implementing improvements to the customer experience across our platform and tools, resulting in a significant reduction in support needs,' the statement said.
'While we're proud of this momentum, it leaves us with more capacity than needed to deliver strong customer support.
'These improvements include reducing the time spent on support tickets with more efficient ways to route work to the right experts who can resolve issues more quickly, better identification and resolution of error codes and more.'
Atlassian said sacked staff would receive 'a generous severance package, healthcare benefits for them and their families, six months access to our EAP and mental health services, visa support if needed, internal mobility and outplacement services'.
The video came hours after co-founder Scott Farquhar was praising the benefits of AI during a National Press Club of Australia address.
'The scale of the opportunity and risks of missing out demand a new kind of partnership – one that moves at the speed of technology, not at the speed of bureaucracy,' he said.
When asked about the job cuts, Mr Farquhar said there 'will be jobs changes' as a result of AI but 'if, as a nation we want to stick and have the jobs of the past, that is not a good plan for us'.
'In these times, or any time, we should be helping our employees to make the transition at a company level but also at a national level,' he said.
'Particularly in Australia, I feel very privileged and blessed that we live in a nation that has a very strong social safety net and very strong skill training and opportunities for our people to re-skill into new areas.'
The news of the axings was met online with contempt from tech workers, who lambasted the move as 'out of touch', with others criticising Mr Cannon-Brookes for buying a private jet.
'Using AI for business support is kinda stupid, one lost customer could cost way more,' said one disgruntled user.
'The billions they make personally means they could just absorb those 150 heads easily without them even putting a bump on their bottom line,' said another.
'If you have the cash to sponsor an F1 team and then sack people you're an asshole.'
The company has not revealed what it paid for its 10-year stake in UK-based Atlassian Williams Racing, but marketing experts say a title sponsorship generally costs upwards of $90m a year.
The deal means Atlassian's logo has been splashed on the FW47 race cars being driven by Alex Albon and Carlos Sainz, meaning it will be seen by a television audience of more than 1.55 billion viewers, plus billions more online.
Atlassian has been contacted for comment.
Shares in Atlassian, which is listed on the US-based Nasdaq, dipped 1.44 per cent after news of the job cuts broke, trading at $197.19 on Thursday, down from $200.05 on the previous day's market close.
Despite the cuts, the company was still advertising 345 open positions globally on Thursday morning. It employs more than 13,000 people worldwide.
Atlassian is scheduled to release its full-year results next Thursday.
The company is currently building a new Australian headquarters near Sydney's Central Station, which it will house the bulk of its local staff. Other staff work remotely across Australia.
kathleen.skene@news.com.au
Originally published as Atlassian savaged for 'frank and cold' video sacking as company spends millions on F1 sponsorship
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