ClickUp cut 22% of its workforce in May 2026 after rapidly adopting artificial intelligence across the company [1, 2, 3]. CEO Zeb Evans said the layoffs were not about reducing costs but reallocating funds to AI-driven talent, stating, "This wasn't about cutting costs. Most savings from this change will flow directly back into the people who stay. We'll be introducing million-dollar salary bands" [3].
The company redefined its future workforce into three roles: builders who create, system managers overseeing AI and automation, and front-liners who handle customer interactions [1, 2, 3]. Evans added, "If you create outsized impact using AI, you'll be paid outside of traditional bands" on the new pay structure [3].
ClickUp aims to boost output 100 times by rebuilding its systems around AI technologies [1, 2, 3]. Growth operations manager Andy Cabasso currently oversees 37 AI agents, reflecting the firm's broad mandate for AI adoption [1, 2, 3].
This restructuring follows wider tech industry trends where AI leads to significant layoffs but also higher pay for elite AI talent. Meta recently cut over 8,000 employees while investing billions in AI talent [1, 2, 3]. Amazon, Cloudflare, and Atlassian have also announced layoffs citing AI-driven changes [1, 2, 3].
ClickUp's valuation stood near $4 billion in 2021 and it had over 1,000 employees as of 2023 [1, 2, 3]. The May 2026 layoffs and compensation overhaul mark a major shift as the company pivots deeply into AI-enabled workforces [1, 2, 3].
