Former and current employees of software company Atlassian have described a workplace culture internally compared to the film series 'The Hunger Games,' where a rigorous ranking system and performance improvement plans are allegedly used to push staff out of the company. These claims emerge following Atlassian's layoff of 1,600 employees in March.
The company's co-founder and CEO, Mike Cannon-Brookes, attributed the March layoffs to artificial intelligence in a pre-recorded video message that drew criticism. Atlassian, which was once lauded for its culture and remote work policies, is now reportedly using a performance management system to reduce headcount rather than through traditional redundancies.
Performance Review Process
An in-depth performance review process, known internally as Apex, is reportedly underway and expected to conclude by the end of July. Previously conducted twice a year, the process was shifted to an annual cycle following staff feedback. Employees speaking anonymously to the Daily Mail stated that the system fosters competition among colleagues rather than focusing on objective goals, and that performance improvement plans (PIPs) are often feel impossible to complete, serving as a means to terminate employment without redundancy payouts.
The Apex process categorizes employees into five tiers: 'greatly exceeding expectations,' 'exceeding expectations,' 'meeting expectations,' 'low expectations,' and 'behind expectations.' Employees complete self-evaluations, which are then reviewed by managers and subsequently by higher levels of management. Insiders claim that during these calibration rounds, staff are ranked against hundreds of colleagues, and ratings are often adjusted downward to meet predetermined quotas. While Atlassian denies this, sources suggest that managers are expected to place 10% of employees in the lowest category.
"Regardless of how good the output of one team is, someone still has to be in that bottom 10 or 20 per cent," one insider stated. Employees have reported that their initial high ratings can be downgraded during the calibration process, leading to significant anxiety and a feeling of a lack of control over their performance evaluations.
Forced Attrition Concerns
Some employees describe the system as a form of 'stack ranking,' where individuals are compared against each other rather than against defined objectives. The perceived vagueness of role requirements allows management to shift expectations, contributing to the feeling that the ultimate goal is 'forced attrition.'
Employees placed in the bottom 10% are reportedly offered an exit package or a PIP. However, insiders claim that PIPs are structured to be unpassable, ensuring dismissal regardless of the employee's efforts. One account details a colleague who reportedly passed their PIP and showed significant improvement, only to have their review vetoed by a senior US-based vice president who had never met them.
"The PIP is not designed to be passable. You're leaving the company either way," one employee commented.
Erosion of Culture
The current performance management system is seen by many as having dismantled Atlassian's once open and collaborative environment. Information sharing has reportedly decreased as employees focus on individual visibility and survival.
Reports suggest that the Apex system was introduced in late 2023 by a US-based executive who viewed Atlassian's low staff turnover rate as unsustainable. This executive allegedly stated at a town hall meeting that the new system would achieve an "industry standard of 10 per cent forced attrition" and align Atlassian with Silicon Valley practices. Atlassian has denied any goals related to forced attrition.
Online employee review forums, such as Glassdoor, reflect these sentiments, with descriptions of a "Hunger Games culture," low morale, and a focus on individual competition over skill and collaboration. Some former employees have labeled the workplace a "sweatshop with poor management."
In response to these allegations, an Atlassian spokesperson stated that the company's performance management process is "fair and transparent." The spokesperson added, "We're committed to building high-performing teams where everyone can do their best work. Like any other company, that requires clear expectations, regular feedback, and performance management. The vast majority of our employees, who meet and exceed the expectations of their role, are rewarded through this framework."