ClickUp Layoffs: CEO Zeb Evans Says ‘I Made This Decision and I Own It’ as US-Based Software Firm Slashes Workforce by 22%

Zeb Evans, the founder and CEO of cloud-based productivity platform ClickUp, announced on Thursday, May 21, that the company has reduced its workforce by 22 per cent. In an unusually candid public memo, Evans stated that the decision was not driven by financial adversity but was instead a proactive restructuring prompted by the rapid integration of artificial intelligence in corporate workflows.

Restructuring for the AI Era

In a detailed post shared on X (formerly Twitter), Evans clarified that the layoffs were a strategic move rather than a response to a financial crisis, asserting that the business is currently performing better than ever. "Today we reduced headcount by 22%. The business is the strongest it's ever been. So I think it's important to be direct about what I'm seeing and why," Evans wrote. ClickUp Layoffs 2026: US-Based Software Firm Slashes Headcount by 22% To Transition Into AI-Oriented Roles.

Today We Reduced Headcount by 22%, Says Zeb Evans

Today we reduced headcount by 22%. The business is the strongest it's ever been. So I think it's important to be direct about what I'm seeing and why.

First, I made this decision and I own it. I did it because the way to operate at the highest level of productivity is changing,…

— Zeb Evans (@DJ_CURFEW) May 21, 2026

The chief executive stated that he personally took responsibility for the job cuts, emphasising that tech firms must adapt immediately to shifting operational models to remain competitive. "First, I made this decision and I own it," Evans wrote. "I did it because the way to operate at the highest level of productivity is changing, and to win the future, ClickUp needs to change with it," he added.

Reinvesting in the '100x Organization'

Evans explicitly denied claims that the job cuts were a traditional cost-cutting exercise, explaining that the capital saved from the headcount reduction would be used to heavily reward the remaining staff. "Second, this wasn't about cutting costs. Most savings from this change will flow directly back into the people who stay," he said. As part of the restructuring into what he calls a "100x organization", Evans announced that ClickUp is introducing new salary bands worth up to USD 1 million annually in cash for employees who achieve exceptional output by building, managing, or orchestrating AI systems. Under this new framework, the company's future workforce will be divided into three primary categories: builders, system managers, and front-liners. Meta Layoffs: ‘AI Is the Most Consequential Technology of Our Lifetimes’, Says Mark Zuckerberg in Memo to Employees After 8,000 Job Cuts.

A Growing Silicon Valley Trend

The workforce reduction at ClickUp is part of a broader, accelerating trend across the global technology sector. Major firms are increasingly reallocating resources away from conventional roles toward specialised AI engineering and automation. ClickUp's announcement occurred during the same week that Meta confirmed it was cutting roughly 8,000 positions globally to optimise its own AI-focused operations. Data from tracking platform Layoffs.fyi shows that more than 114,000 tech employees across 150 companies have been laid off so far in 2026, with a significant portion of those cuts attributed to automation and artificial intelligence restructuring.

Despite the immediate job losses, Evans maintained that aggressive automation would ultimately change the nature of employment rather than completely replace human workers. "The future is not fewer people," Evans wrote. "It's different work, new roles, and better rewards for those who embrace it," he added.

(The above story first appeared on LatestLY on May 24, 2026 04:18 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).