Software giant Atlassian has set off a new controversy following its layoff of over 150 employees. Co-founder Mike Cannon-Brookes announced the layoff via a pre-recorded video message to the affected employees, citing artificial intelligence integration as the reason behind the layoff. The AI integration will affect various roles, particularly within customer service. Amidst the uneasiness faced by affected employees, the CEO has sparked off a new controversy concerning their new private jet.
Atlassian co-founder laid off employees via video message
The layoffs were done to impact employees through a pre-recorded video message from Cannon-Brookes, a method that has drawn criticism for its impersonal nature. Following the video, employees reportedly had to endure a 15-minute wait to receive email confirmation of their layoff status. Subsequently, affected staff found themselves locked out of their work laptops. Atlassian has committed to providing six months of pay to the impacted employees.
Cannon-Brookes, whose personal net worth is estimated at $13.9 billion, recently bought a $75 million Bombardier 7500 private jet. Amidst the news of job cuts, he took to LinkedIn to defend his acquisition, stating it was essential for him to be a “present dad” while managing a global business. He also cited personal security as a primary reason for the jet, acknowledging the ethical dilemma but maintaining its necessity for his lifestyle and work commitments.
Other co-founder supports AI adoption
On the sidelines of the layoff announcement, Atlassian’s other co-founder, Scott Farquhar, publicly supported the transformative potential of AI. He emphasised AI’s crucial role in the future and encouraged its daily adoption by individuals and leaders across all sectors.
The entire tech industry is witnessing a growing trend of global-scale layoffs to make way for AI tools and services. Big names like Microsoft, Intel, Tata Consultancy Services (TCS) and other have either laid off or announced future layoffs in a bid to make the business more cost-effective and ‘future-ready’. While Microsoft closed off its Xbox division as well as shut shop in the country of Pakistan, TCS confirmed that its layoffs will happen over the coming months and the management will try to be “as compassionate” as they can while laying off approximately 12,000 employees.