US productivity software giant ClickUp has laid off nearly 22% of its workforce as the company aggressively shifts toward an AI-driven operating model, sparking fresh debate over the future of jobs in the tech industry.

CEO Zeb Evans said the layoffs were not aimed at cutting costs but were part of a larger restructuring to build what he called a “100x organization” powered by artificial intelligence. The company has reportedly deployed around 3,000 internal AI agents to automate coding, customer support, workflow management and other operations.

In a controversial move, Evans announced that remaining employees capable of delivering “outsized impact” using AI tools could receive salary packages reaching up to $1 million annually.

The development highlights a growing trend across Silicon Valley, where major firms are rapidly integrating AI while reducing human workforce requirements. Analysts say the move could become a blueprint for future tech companies seeking leaner, AI-first operations.

Industry observers warn that while AI may boost productivity, it is also accelerating fears of large-scale job displacement in the global technology sector.