US company ClickUp lays off 22% workforce, but CEO says bigger rewards await those…
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“Most of the savings from this change will go directly back to the people who stay,” Evans wrote to X.
“We’re going to introduce million-dollar salary ranges. If you make a huge impact using AI, you’ll get paid outside of traditional ranges.”
ClickUp wants ‘100x output’ with AI-first model
In 2023, ClickUp had more than 1,000 employees worldwide, according to an earlier company blog post. The latest layoffs are part of a broader effort to rebuild the company with an AI-focused structure.
Evans explained that the future workforce at ClickUp will now be divided into three broad categories:
- builders
- system administrators
- front shirts
He said builders and systems administrators will increasingly work with AI systems to automate parts of their own work, while front-line workers will focus on customer interaction and maintaining the “human touch.” “People who automate their jobs with AI will always have jobs,” Evans said in another X post.
“They become the owners and agent managers of artificial intelligence systems.”
He also claimed that the company’s long-term goal is to achieve “100x output” through AI-powered productivity.
AI workflows become mandatory in ClickUp
Reports indicate that the company has already begun pushing its employees to use AI agents more aggressively in their daily work.
ClickUp has encouraged employees to share AI workflows internally and build a stronger AI-first culture across teams, growth operations manager Andy Cabasso told Business Insider.
The move reflects a broader trend in the global tech industry where companies are rapidly adopting AI tools while also reducing headcount.
Meta, Microsoft and LinkedIn among firms cutting jobs amid AI boom
ClickUp’s announcement comes in the same week that Meta confirmed sweeping layoffs affecting nearly 8,000 employees.
Meta CEO Mark Zuckerberg defended the change in an internal memo cited by CNBC.
“Artificial intelligence is the most important technology of our lives,” Zuckerberg reportedly told employees.
“Companies that lead the way will define the next generation.”
Many other major tech companies, including Microsoft, Cisco, Cloudflare, Coinbase, and LinkedIn, have also announced layoffs or restructurings related to AI adoption in recent months.
More than 114,000 tech workers have reportedly lost their jobs at 150 companies so far in 2026, according to data from Layoffs.fyi.
California steps in over AI job fears
As concerns grow about AI replacing workers, Gavin Newsom announced measures aimed at supporting workers displaced by automation.
California’s governor recently signed an executive order designed to assist workers affected by AI-driven layoffs through severance pay, employment support and transition assistance.
“California has never sat back and watched the future happen to us, and we won’t start now,” Newsom said in a statement.
“This moment requires us to reimagine the entire system, how we work, how we govern, how we prepare people for the future.”
AI layoffs are becoming the new normal in tech
Recent developments show how rapidly AI is changing hiring patterns across Silicon Valley and the broader global tech sector.
While some companies see AI as a tool to boost productivity and reward top talent, critics worry that aggressive automation could fundamentally reshape the job market and leave thousands of workers behind.
Input from agencies
