US-based software firm ClickUp has reduced headcount by 22 per cent as part of operations restructure to improve output "100-fold" through AI‑oriented roles.
ClickUp CEO said the move was made from a position of strength, with most savings to be redirected to remaining employees and higher compensation for those who deliver outsized impact using AI.
"Today we reduced headcount by 22 per cent. The business is the strongest it's ever been. 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 Founder and CEO of Software firm ClickUp, said in a social media post on X.
Everyone affected receives a package aimed at honouring their contributions and easing the transition, Evans said. The company will introduce $1 million cash per year salary bands for employees who produce "100x impact"
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He outlined a new operating model where the highest‑performing engineers and product leaders will not simply write code but will orchestrate and review AI agents, increasing their productivity many fold.
"The common narrative is that AI makes everyone more productive. It doesn't. Many of the workflows of today, if left unchanged, create bottlenecks in AI systems," his post read.
If the company's best engineers are spending time reviewing other employees' code, then it creates an "inefficient bottleneck," he said, adding that these engineers can review their agent's code much faster than reviewing human code.
"Ironically, the people that automate their jobs with AI will always have a job. They become owners of the AI systems - agent managers," the CEO said.
Facebook parent Meta earlier this week began laying off 10 per cent of its global workforce to bolster its artificial intelligence initiatives.
Global tech layoffs are accelerating in 2026, with more than 100,000 jobs already cut and total losses likely to exceed 3 lakh this year, led by companies like Oracle, Amazon, and Meta, according to reports.
Rising inflation and economic pressures are weighing heavily on consumers in the United States, while India is witnessing strong employment growth in its unincorporated sector, highlighting contrasting economic trends in the two countries.
According to the US Bureau of Labor Statistics, US inflation rose to 3.8 per cent in April — the fastest annual increase since 2023 — driven largely by surging energy and grocery prices. Monthly inflation climbed 0.6 per cent, with energy costs accounting for over 40 per cent of the increase.
Gasoline prices jumped 28.4 per cent year-on-year, while the energy index surged 17.9 per cent amid ongoing tensions in the Middle East and disruptions to oil shipments through the Strait of Hormuz. National average fuel prices have crossed USD 4.50 per gallon, according to the American Automobile Association.
Grocery prices also continued to rise, with food-at-home inflation increasing 0.7 per cent in April alone. Economists warned that rising transportation and fuel costs are pushing up prices across sectors, squeezing household budgets and reducing consumer purchasing power.
Meanwhile, real wages in the US have declined, with the BLS reporting a 0.5 per cent monthly drop in average hourly earnings after adjusting for inflation, raising concerns over slowing consumer spending and rising reliance on credit.
In contrast, India's unincorporated non-agricultural sector recorded robust growth in the January-March 2026 quarter, according to data released by the National Statistics Office.
Employment in the sector crossed 15.17 crore, marking a 15.51 per cent year-on-year increase, while the number of establishments rose 16.69 per cent to 9.16 crore.
The rural economy emerged as the biggest growth driver, with employment rising 21.65 per cent and establishments increasing 20.46 per cent. The report also highlighted growing digital adoption, with nearly 81 per cent of establishments using the internet and cashless transactions for business operations.
Women accounted for over 29 per cent of the workforce in the sector, while the services segment saw especially strong gains, with establishments growing 24.82 per cent and employment rising 31.13 per cent.
The contrasting trends underline the growing inflationary pressure facing American households, even as India's informal sector continues to expand and generate jobs, particularly in rural areas.
