Cloud-based productivity firm ClickUp has reduced its workforce by 22%, with founder and CEO Zeb Evans stating the company is restructuring around artificial intelligence and new ways of working. In a detailed post shared on X, Evans emphasized that the decision was not driven by financial pressure, asserting that the business is currently "the strongest it's ever been." He revealed plans to introduce salary bands of up to $1 million a year for employees who create what he called "outsized impact" using AI systems.
CEO's Statement on Layoffs
In the post, Evans said he personally made the decision to cut jobs and described it as part of a broader shift in how companies operate with AI. "Today we reduced headcount by 22%," he wrote. "The business is the strongest it's ever been." He added, "This wasn't about cutting costs. Most savings from this change will flow directly back into the people who stay." According to Evans, affected employees will receive compensation packages aimed at helping with the transition.
Million-Dollar Salary Bands
The ClickUp CEO announced that the company will introduce "million-dollar salary bands" for workers who are able to create a major impact using AI tools and systems. "If you create outsized impact using AI, you'll be paid outside of traditional bands," Evans wrote. He explained that the company wants to reward workers who can manage AI systems, direct AI agents, and improve productivity at a large scale.
Impact on Engineering and Product Roles
Evans noted that AI is changing how engineering teams work, arguing that the best engineers are becoming "100x engineers" by directing AI agents instead of writing code themselves. "The skill is judgment," he wrote. He also observed that product management and design roles are beginning to merge, while new positions such as "Agent Managers" are emerging inside companies using AI heavily. According to Evans, workers who automate processes using AI may become responsible for managing those systems in the future.
Human Touch Remains Important
Despite the focus on AI, Evans emphasized that some tasks should continue to involve people directly. He argued that customer-facing roles and one-on-one meetings remain important even as AI tools become more advanced. "In a world that will become saturated with AI communication, the human touch will matter more than anything to customers," he wrote.
