US-based software company ClickUp has implemented a 22% reduction in its workforce as part of a strategic overhaul aimed at enhancing productivity through AI-driven positions. ClickUp’s CEO, Zeb Evans, emphasized that this decision was made to strengthen the business, with the savings being reinvested in existing employees and offering higher compensation to those leveraging AI for significant impact. The company plans to introduce $1 million annual salary bands for employees generating a “100x impact.”
In a social media announcement, Evans assured that employees affected by the layoffs would receive support packages recognizing their contributions and facilitating the transition. ClickUp is shifting towards a new operational model where top-performing engineers and product leaders will focus on overseeing and optimizing AI agents rather than solely coding, leading to substantial productivity gains. Evans highlighted the importance of streamlining workflows to prevent bottlenecks in AI systems.
According to Evans, employees who leverage AI to automate tasks will play a crucial role in managing AI systems, ensuring their job security. This move aligns with a broader trend in the tech industry, with Meta, Facebook’s parent company, recently laying off 10% of its workforce to strengthen its AI initiatives. Reports suggest a surge in global tech layoffs in 2026, with over 100,000 job cuts already recorded and anticipated total losses exceeding 300,000 this year, driven by companies like Oracle, Amazon, and Meta.
