So far, you have heard of AI replacing the human workforce at big tech companies. But have you heard of people losing jobs because they refused to adopt AI? After Coinbase CEO’s revelation, another incident surfaced where a company’s CEO was keen on adopting AI in almost all aspects, and when certain employees opposed, they were asked to leave. The CEO went on to fire almost 80 per cent of the human workforce primarily due to them refusal to include AI in their workflow.
Eric Vaughan, CEO of the business-to-business software company IgniteTech, replaced almost 80 per cent of his workforce after they resisted his company-wide push to adopt AI tools. The decision, which he described as an “existential” necessity, was the result of what he called “mass resistance, even sabotage” from employees who refused to integrate AI into their workflow.
IgniteTech CEO wanted employees to learn AI
Vaughan’s initiative began in early 2023 with the introduction of ‘AI Mondays,’ a policy that required all staff to dedicate their time exclusively to AI-related projects. Despite significant company investment in upskilling, including paying for prompt engineering classes, the CEO’s effort was met with strong opposition.
Vaughan noted that the most friction came from technical staff, who focused on the limitations of AI rather than focusing on its potential as a collaborative tool. “We got flat-out, ‘I’m not going to do this’ resistance. And so we said goodbye to those people,” he told Fortune in an interview.
CEO hires Chief AI Officer
Despite the restructuring, Vaughan pushed forward, hiring a new chief AI officer and reorganising the company in a way so that all divisions fell under the AI head. The strategic shift appears to have paid off. By late 2024, IgniteTech had launched two AI products, completed a major acquisition, and achieved a near-75% per cent EBITDA margin.
When asked about his brutal decision, Vaughan stated that the change was not merely about technology. Instead, it was about a fundamental shift in company culture and business strategy. “We said goodbye to those people,” he said, and when asked if he would do it again, he responded, “Absolutely.”
