Zeb Evans, CEO of the $4 billion all-in-one productivity platform ClickUp, has announced that the company is laying off more than 20% of its employees. In a detailed post on X, formerly Twitter, Evans revealed that ClickUp cut 22% of its headcount. He described the layoffs as a restructuring effort aimed at creating a '100x org' and introduced $1 million cash salary bands for employees who build or run AI systems that produce outsized impact. Evans emphasized that the layoffs are proactive rather than financial in nature.
Proactive Restructuring, Not Cost-Cutting
Evans stated, 'This wasn't about cutting costs. Most savings from this change will flow directly back into the people who stay.' He explained that the decision was made to adapt to a rapidly changing productivity landscape, where AI is fundamentally altering how companies operate. The layoffs are intended to streamline operations and invest in high-impact roles, particularly those involving artificial intelligence.
The 100x Organization Vision
Evans outlined a new organizational structure called the '100x org,' which aims for 100 times the output. He argued that incremental improvements to existing systems are insufficient and that companies must rebuild rather than iterate on broken workflows. The restructuring focuses on three key roles: builders, system managers, and front-liners.
Builders: 10x Engineers and Product Managers
Evans noted that AI makes top engineers 100 times more productive by enabling them to direct AI agents to write code, rather than writing it themselves. These engineers focus on orchestration and review, which are the new bottlenecks. Similarly, product management and design roles are merging, with designers becoming more customer-focused and product managers gaining UX intuition. Evans cautioned against having product managers ship production code, as that creates inefficiencies.
System Managers and Agent Managers
Employees who automate their jobs with AI become owners of AI systems, or 'agent managers.' Evans stressed that underlying systems must be rebuilt entirely, not just iterated upon, to compete in an AI-driven world.
Front-Liners: The Human Touch
Despite AI advancements, Evans emphasized that human interaction with customers remains critical. Front-line employees should spend nearly all their time with customers, while administrative tasks are automated.
Rewarding 100x Impact
Evans announced that savings from the restructuring will be reinvested into employees who create outsized impact. The company is introducing $1 million cash salary bands for individuals who produce 100x impact through AI systems. 'Compensation bands of today should be thrown out the door,' he wrote, adding that the goal is to retain top talent for decades.
Future Outlook
Evans predicted that nearly every company will undergo similar changes. 'The future is not fewer people. It's different work, new roles, and better rewards for those who embrace it,' he said. ClickUp, headquartered in San Diego with offices in Canada, Ireland, the UK, and Australia, was named to the Forbes Cloud 100 List in 2025 and claims to be the world's first Converged AI Workspace.
