ClickUp laid off 22% of its workforce while CEO Zeb Evans said the collaboration software company is embracing AI agents to raise productivity and reshape pay, not simply cut costs. Evans said the company plans to reward employees who create outsized impact with AI, even outside traditional salary bands.
What ClickUp said
Evans announced the layoffs on X and said the savings would go back to the people who remain.
He said ClickUp will introduce “million-dollar salary bands” for employees who deliver outsized results using AI.
AI agents at work
ClickUp recently introduced about 3,000 internal AI agents to handle complex tasks for employees, according to Fortune.
Staff are now expected to direct the agents and review the output rather than do all the work themselves.
Company goals
Evans said his aim is to turn ClickUp into a “100x org.”
He also said the company is measuring productivity gains internally and may build those measures into future customer products.
How it fits the market
A recent Gartner survey found about 80% of companies using autonomous tech have cut jobs, but the study said those cuts do not necessarily produce meaningful financial returns.
ClickUp says it is seeing genuine gains from AI agents and is not using the technology as a pretext to downsize.
Broader trend
Some companies are tracking employee token use to judge AI adoption, but critics say that metric rewards spending rather than value.
Evans said workers who automate their jobs with AI will keep their jobs, though he also suggested companies will need fewer people as AI takes on more tasks.
Other examples
Polsia, a one-person startup that says it handles software operations for solopreneurs, recently raised $30 million at a $250 million valuation.
The company is led by founder and CEO Ben Broca.
Featured image credits: Automated Marketer
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