TechCrunch discusses the danger of companies becoming overly convinced that AI can replace human roles. Box founder Aaron Levie argues that the people making those decisions often understand the jobs least, calling it a form of “AI psychosis.” The piece cites ClickUp cutting 22% of its workforce for AI agents and notes that 2026 tech layoffs are already nearly matching all of 2025.
Box founder Aaron Levie calls some executive thinking around AI replacement “AI psychosis.” He argues that the people deciding AI can replace workers are often the least likely to understand what those jobs truly involve. The article frames this against ClickUp cutting 22% of staff for AI agents and 2026 tech layoffs nearly matching all of 2025.
Productivity startup ClickUp is undergoing a massive restructuring, laying off hundreds of human workers to deploy thousands of AI agents in their place. This move by the nine-year-old company highlights a pivotal and controversial shift in how tech firms scale operations. It serves as a stark real-world example of AI-driven labor displacement and the evolving nature of knowledge work.