ClickUp’s massive layoffs tell us about the future of work
AI’s biggest champions have argued for some time that the technology will usher in an era of unprecedented productivity gains, massively rewarding workers who use it while displacing those who don’t.
Zeb Evans, CEO of collaboration software startup ClickUp claims this change is imminent. Last Thursday, Evans announced on X that the company, which was last valued at $4 billion in 2021, had laid off 22% of its workforce. However, this cut was not seen as a cost-cutting measure but as a radical embrace of AI that would take the company to the next level.
Evans wrote, “Most of the savings from this change will flow directly back to those who make the most.” We will introduce million-dollar salary bands. If you make a big impact using AI, you will be paid outside the traditional bands.”
ClickUp recently introduced nearly 3,000 internal AI agents to handle a wide range of complex tasks on behalf of its employees. fate chart published several days ago. Rather than performing the work themselves, staff members are now expected to direct these agents and ultimately review the output to ensure it meets company standards.
Evans’ goal, according to his X post, is to turbocharge ClickUp into a “100x org” for AI.
ClickUp is not alone in hoping that AI agents will deliver massive productivity gains.
In fact, according to a recent Gartner survey, nearly 80% of companies using autonomous technology have cut jobs. However, the study found that the workforce has decreased and is not necessarily translated into meaningful financial returns.
While Gartner’s findings show that some companies use unproven AI as an excuse to downsize, ClickUp says its case is not one of them.
Evans told TechCrunch via email that the startup is actually seeing gains in productivity from AI agents. ClickUp is measuring those efficiencies internally and preparing to incorporate them into an upcoming product for its customers.
“Instead of simplifying the cost of tokens, we simplify the value created and time saved,” Evans wrote.
Recently, a growing number of companies have begun monitoring employee token consumption, using it as a metric to see who is actually adopting AI tools. But critics argue that “token maxing” – as the concept is known – is the wrong metric because it simply inflates AI spending.
“People who automate their jobs with AI will always have jobs,” Evans claimed in his post. But if AI continues to take over more tasks, ClickUp will eventually need fewer and fewer people, as it will fail to automate those tasks effectively.
The tech world has long theorised about this scenario.
An extreme example of a high-profile startup using AI automation already exists. Polesia, a year-old startup that claims to handle all software operations for solo entrepreneurs, is run by just one person: its founder and CEO, Ben Brokaw. That efficiency is clearly paying off: Polesia has just grown $30 million. At a valuation of $250 million.
