Cloudflare CEO says company doesn’t need ‘measurers’; Wix chief says job cuts are directly due to AI

Greetings, comms pros! Let’s take a look at a few news stories from the last week and see what we can learn from them. This week, we’ve got three layoff comms-related stories with CEOs laying out their reasoning for the staff reductions. One news item talks about a CEO commenting on employees he feels AI is making obsolete, while another affirms the value of a human approach despite automation-related job cuts. In all of our stories this week, we’ll analyze how leaders are talking about AI and what internal communicators can take away from their approaches.

1. Cloudflare’s chief executive gets blunt about the reasoning behind layoffs

Cloudflare CEO Matthew Prince explained in an opinion piece for The Wall Street Journal that recent layoffs occurred despite record growth. In the piece, he was clear in his assessment about layoffs, stating that the “builders and sellers” were safe at Cloudlfare but AI was coming for jobs belonging to “measurers”.

We cut middle managers across the organization because AI allows us to have more direct reports per manager while still measuring and mentoring our teams effectively. We consolidated our operations functions into a single group that can support teams across the business, using AI to gain specific expertise when needed. We significantly reduced our marketing team, which, like in most companies, was teeming with measurers. Across our finance team, we found opportunities to consolidate and automate.

Prince’s message is notable because it doesn’t pretend to tell employees that they’re all equally valued. Instead, it creates a hierarchy with builders and sellers at the top and measurers made obsolete by AI. That’s a pretty no-nonsense business message. Prince’s piece makes it absolutely clear what kinds of employees it needs more of and what kinds of workers it’s willing to let go. That’s the kind of messaging that can quickly create a culture shift.

2. Wix CEO announces major job cuts, ascribes them to AI

Wix CEO Avishai Abrahami shared in a post on X that his company is laying off about 20% of its staff in response to the AI-centric marketplace. Abrahami expressed his regret over the move, but also stated that AI is the largest “rewiring” in the tech space in decades and companies need to respond accordingly.

It also means we need to become a faster, leaner, and flatter organization. We are moving to a structure with fewer levels between any member of our leadership and the most junior person on the team. Fewer layers means faster decisions, clearer ownership, and less distance between the people setting direction and the people building the product – but it also means a smaller number of people.

It is clear to us that in this new era, companies need to make this change in order to lead and compete or risk falling behind.

We are choosing to compete.

Abrahami’s note redefines what optimal work structures look like at Wix. On the surface, flattened structures bring people closer to the products they’re working on and have fewer layers of translation between strategy at the top and execution in individual roles. While this might sound empowering for employees on the surface, it’s also worth considering that this sort of shift creates more direct accountability for employees, and communicators need to be aware that it can change both cultural dynamics and the ways teams communicate.

Internal communicators need to know that these kinds of changes also adjust the landscape they’re messaging into — as companies change the way they’re structured and responsibilities shift, comms pros need to respond to that adjustment with new strategies and touchpoints. As AI shifts the way people work, comms pros need to morph their workflows to ensure they’re still reaching the right people.

3. ClickUp chief shares news of layoffs despite business being “strongest it’s ever been”

ClickUp CEO Zeb Jones posted on X about the reasoning behind his company’s recent layoffs of 22% of its workforce, despite a strong financial outlook. As is so common these days, Jones pinned job cuts up to AI and a shift toward a “100x” company outlook that’ll improve production. But what’s interesting is that he mentioned how human beings are integral to this shift.

Nearly every company will make changes like these. The ones that do it proactively will define what comes next.

The future is not fewer people. It’s different work, new roles, and better rewards for those who embrace it. We’re already seeing entirely new roles emerge, like Agent Managers, that didn’t exist a year ago.

ClickUp is positioning to lead this shift, not just internally, but for our customers too. I’ve never been more certain about where we’re headed.

In his post, Jones is expressing that people are key to AI adoption being effective, and the people who shepherd it will be rewarded in the long run. This optimistic tone is something internal comms pros can learn from. If you focus on the good things AI can do for your company and center it on the people doing the work, you stand a better chance of communicating adoption more effectively.

4. How about some good news?

• A Philadelphia-based scientist discovered a rare wildflower that only grows in New Jersey.
• A pony in England was rescued after getting stuck inside a tractor tire.
• A study reported a 70% drop in “forever chemicals” in seabird eggs, pointing to regulatory successes.
• Ragan Training is an excellent place for communications professionals to find inspiration and valuable resources.
• You should be rewarded for your work. Find out how to earn an award here!

Have a great weekend comms all-stars!

Sean Devlin is an editor at Ragan Communications.