Vancouver-based AI software startup Klue laid off approximately 85 employees, representing just over 40 percent of its workforce, in a major restructuring on June 25. The company, which provides AI-powered competitive intelligence tools, is contending with rising competition from businesses using DIY AI solutions like OpenAI's ChatGPT, leading to missed revenue targets and increased customer churn. CEO Jason Smith cited the need to become an "AI-first" operation and hasten the path to profitability as key reasons, noting that AI acts both as a competitive threat and an internal efficiency driver. The layoffs, which included voluntary departures, are part of a broader consolidation of engineering operations in Canada and a reduction in compute spending.
