New Delhi, May 22: American software company ClickUp has announced a significant reduction in its workforce, cutting 22% of its employees. This decision aligns with the company’s goal to enhance operational efficiency through AI-based roles, aiming to increase productivity by up to 100 times.
The CEO of ClickUp stated that this decision reflects the company’s strong position and that the savings generated will be redirected to provide higher salaries for remaining employees who excel with AI support.
In a post on the social media platform X, ClickUp’s founder and CEO, Zeb Evans, shared, “Today we have reduced our workforce by 22%. The company is in its strongest position ever. I made this decision, and I take full responsibility for it. I took this step because the way we work with the highest levels of productivity is changing.”
Evans assured that those laid off would receive a package that honors their contributions and assists them during this transition. The company will introduce an annual salary band of up to $1 million for employees who demonstrate a “100 times impact” in their performance.
He also outlined a new operating model where top engineers and product leaders will not only write code but also manage and review AI agents, significantly boosting their productivity.
He noted, “The common perception is that AI makes everyone more productive. But that’s not the case. Many workflows today, if left unchanged, will hinder AI systems.”
Evans further explained that if the company’s best engineers spend their time reviewing code from other employees, it becomes an “ineffective barrier.” These engineers can review code generated by AI agents much faster than human-written code.
Interestingly, he mentioned that those who automate their jobs with AI will always have work. They will become the agents managing the AI systems.
Earlier this week, Meta, the parent company of Facebook, also began reducing its global workforce by 10% to strengthen its artificial intelligence initiatives.
Reports indicate that layoffs in the global tech sector are rapidly increasing in 2026. So far this year, over 100,000 jobs have been lost, with total layoffs expected to exceed 300,000, including major companies like Oracle, Amazon, and Meta.
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