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What ClickUp’s mass layoff tells us about the way forward for work

Admin by Admin
May 26, 2026
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AI’s greatest champions have argued for a while that the expertise will usher in an period of unprecedented productiveness good points, richly rewarding employees who harness it whereas displacing those that don’t.

Zeb Evans, CEO of the collaboration software program startup ClickUp, claims that this shift is imminent. Final Thursday, Evans introduced on X that the corporate, which was final valued in 2021 at $4 billion, had laid off 22% of its workforce but characterised that discount as not a cost-cutting measure, however slightly a radical embrace of AI that can propel the corporate to the following degree.

“Most financial savings from this modification will movement immediately again into the individuals who keep. We’ll be introducing million-dollar wage bands. For those who create outsized affect utilizing AI, you’ll be paid exterior of conventional bands,” Evans wrote.

ClickUp not too long ago launched roughly 3,000 inside AI brokers to deal with a variety of advanced duties on behalf of its staff, in keeping with a Fortune article revealed a number of days in the past. As a substitute of performing the work themselves, employees members are actually anticipated to direct these brokers and in the end evaluate the output to make sure it meets the corporate’s requirements.

Evans’s aim, in keeping with his X put up, is for AI to turbocharge ClickUp right into a “100x org.”  

ClickUp is just not alone in its hope that AI brokers will present large productiveness good points.

The truth is, in keeping with a current Gartner survey, about 80% of corporations utilizing autonomous tech have reduce jobs. Nevertheless, the research discovered that workforce reductions aren’t essentially translating into significant monetary returns.

Whereas Gartner’s findings counsel some corporations use unproven AI as an excuse to downsize, ClickUp maintains it’s not certainly one of them.

Evans advised TechCrunch through electronic mail that the startup is certainly seeing productiveness good points from AI brokers. Not solely is ClickUp measuring these efficiencies internally, however it’s additionally apparently gearing as much as embody them in a forthcoming product for its prospects.   

“As a substitute of gamifying token price, we gamify worth created and time saved,” Evans wrote.

In current months, a rising variety of corporations have began monitoring worker token consumption, utilizing it as a metric to see who is definitely adopting AI instruments. However critics argue that “tokenmaxxing”—as this idea is thought—is the incorrect metric as a result of it merely racks up AI bills.

“The those who automate their jobs with AI will at all times have a job,” Evans claimed in his put up. But when AI retains taking on extra duties, ClickUp will ultimately want fewer and fewer individuals, eliminating those that fail to automate their features effectively.

Tech circles have lengthy theorized about this situation.

One excessive instance of a high-profile startup utilizing AI automation to the max already exists. Polsia, a one-year-old startup that claims to deal with all software program operations for solopreneurs, is run by only one individual: its founder and CEO, Ben Broca. That effectivity is outwardly paying off: Polsia simply raised $30 million at a $250 million valuation.

Once you buy by hyperlinks in our articles, we might earn a small fee. This doesn’t have an effect on our editorial independence.

Tags: ClickUpsfutureLayoffMassTellsWork
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