What ClickUp’s mass layoffs tell us about the future of work

AI’s biggest champions have claimed for some time that the technology will usher in an era of unprecedented productivity gains, richly rewarding workers who harness it while displacing those who don’t.

That shift is imminent, says Zeb Evans, CEO of collaboration software startup ClickUp. Last Thursday, Evans It was announced in X That company, which was last reviewed in 2021 In the amount of 4 billion dollarslaid off 22% of its workforce, but described this reduction as not a cost-cutting measure, but rather a radical embrace of artificial intelligence that would push the company to the next level.

“Most of the savings from this change will flow directly to the people who stay. We will offer multi-million dollar salary packages. If you make a significant impact with AI, you will be paid outside of traditional ranges,” Evans wrote.

ClickUp recently introduced nearly 3,000 internal AI agents to handle a wide range of complex tasks on behalf of its employees, according to Luck article Posted a few days ago. Instead of performing the work themselves, employees are now expected to direct these agents and ultimately review the deliverables to ensure they meet company standards.

Evans’ goal, according to his post on X, is for AI to boost ClickUp into a “100x enterprise.”

ClickUp isn’t alone in hoping that AI agents will provide huge productivity gains.

In fact, according to a recent Gartner survey, about 80% of companies using autonomous technology have reduced their jobs. However, the study found that workforce reductions Not necessarily translated To meaningful financial returns.

While Gartner’s findings suggest that some companies are using unproven AI as an excuse to downsize, ClickUp asserts that it is not one of them.

Evans told TechCrunch via email that the startup is already seeing productivity gains from its AI agents. Not only is ClickUp measuring these efficiencies internally, it also appears to be preparing to incorporate them into an upcoming product for its customers.

“Instead of manipulating the cost of the token, we manipulate the value created and save time,” Evans wrote.

In recent months, a growing number of companies have begun monitoring employee token consumption, using them as a metric to see who is actually using AI tools. but Critics argue “Tokenmaxxing” – as the concept is known – is a false measure because it simply increases AI overhead.

“People who automate their jobs with AI will always have a job,” Evans claimed in his post. But if AI continues to take on more tasks, ClickUp will eventually need fewer people, eliminating those who fail to automate their jobs well.

Technology circles have long theorized about this scenario.

There is already one extreme example of a high-profile startup using AI automation to its fullest extent. Polsia, a year-old startup that claims to handle all the software operations for solopreneurs, is run by just one person: its founder and CEO, Ben Broca. Clearly, this efficiency is paying off: Polisia has just lifted 30 million dollars With a valuation of $250 million.