IgniteTech CEO defends firing 80% of workforce over AI resistance
It was technical staff who resisted the transformation most strongly.
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IgniteTech chief executive Eric Vaughan has reaffirmed his controversial decision to dismiss nearly 80 per cent of his global workforce in 2023 after employees refused to embrace the company’s sweeping artificial intelligence mandate. Speaking to Fortune, Vaughan admitted the decision was “extremely difficult,” but insisted he would make the same call again, citing the long-term benefits it delivered for the enterprise software firm.
The upheaval began in early 2023 when Vaughan described AI as an “existential threat” to businesses and introduced what became known internally as “AI Mondays” – compulsory weekly workdays in which staff were required to dedicate all efforts exclusively to artificial intelligence projects. Resistance was immediate and widespread, with hundreds of employees opposing the forced transformation. Vaughan opted to replace rather than persuade, leading to one of the most drastic workforce restructurings in the sector.
Technical teams most resistant
It was technical staff who resisted the transformation most strongly, Vaughan revealed. While marketers and sales staff proved more open to adopting the new tools and training programmes, engineers and developers argued that AI’s limitations outweighed its potential. Vaughan noted that these groups were the most vocal in their scepticism and least willing to adjust.
IgniteTech attempted to cushion the shift with substantial investment. Around 20 per cent of payroll was redirected towards large-scale AI education initiatives, including reimbursements for AI software and prompt engineering classes. Yet sabotage and outright refusal to participate were rife, prompting Vaughan to take drastic measures over a 12-month restructuring period.
Financial rewards from cultural upheaval
Despite the turmoil, Vaughan’s approach has delivered striking financial returns. By 2024, IgniteTech had launched two patent-pending AI solutions and recorded profit margins close to 75 per cent EBITDA, while also completing a major acquisition. The performance, Vaughan argued, validated the painful decision to pursue aggressive AI adoption at such scale.
Research conducted by AI platform 'Writer' indicates that one in three workers have actively sabotaged corporate AI initiatives. The report also found that 41% of millennial and Gen Z employees resist implementation through passive or active non-compliance.
Nevertheless, Vaughan described the mass firings as an unintended consequence of entrenched cultural resistance, rather than a deliberate strategy he would encourage others to replicate. “It was never the plan,” he said, “but the necessity became unavoidable.”
