The following script now works when called from cron
or an equivalent. Thanks to @ansh0l for the clue.
PATH=/usr/local/bin:/usr/local/sbin:/usr/bin:/bin:/usr/sbin:/sbin
cd $HOME/projects
tar -cjf foo.$(date +%Y%m%d%H%M%S).tar.bz2 foo
find ./ -maxdepth 1 -name "foo*.tar.bz2" | ghead -n -5 | xargs rm