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Home Technology

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

by Vegas Valley News
May 26, 2026
in Technology
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What ClickUp’s mass layoff tells us about the way forward for work
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AI’s largest champions have argued for a while that the expertise will usher in an period of unprecedented productiveness features, richly rewarding staff 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 subsequent degree.

“Most financial savings from this modification will circulation instantly again into the individuals who keep. We’ll be introducing million-dollar wage bands. If you happen to create outsized affect utilizing AI, you’ll be paid outdoors of conventional bands,” Evans wrote.

ClickUp just lately launched roughly 3,000 inner AI brokers to deal with a variety of advanced duties on behalf of its workers, in response to a Fortune article printed a number of days in the past. As a substitute of performing the work themselves, workers members are actually anticipated to direct these brokers and finally evaluate the output to make sure it meets the corporate’s requirements.

Evans’s objective, in response to his X publish, is for AI to turbocharge ClickUp right into a “100x org.”  

ClickUp will not be alone in its hope that AI brokers will present large productiveness features.

In reality, in response to a latest Gartner survey, about 80% of corporations utilizing autonomous tech have lower jobs. Nonetheless, the research discovered that workforce reductions aren’t essentially translating into significant monetary returns.

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

Evans informed TechCrunch by way of e mail that the startup is certainly seeing productiveness features from AI brokers. Not solely is ClickUp measuring these efficiencies internally, nevertheless 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 latest 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 understood—is the fallacious metric as a result of it merely racks up AI bills.

“The those who automate their jobs with AI will all the time have a job,” Evans claimed in his publish. But when AI retains taking up extra duties, ClickUp will finally want fewer and fewer individuals, eliminating those that fail to automate their capabilities properly.

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 particular person: its founder and CEO, Ben Broca. That effectivity is outwardly paying off: Polsia simply raised $30 million at a $250 million valuation.

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

Tags: ClickUpsfutureLayoffMasstellsWork
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