Adopt AI: IgniteTech CEO Eric Vaughn stands by his radical decision to replace nearly 80% of his workforce in 2023 after employees protested the company’s aggressive artificial intelligence adoption mandate. The enterprise software executive told Fortune he would reinstate the massive layoffs despite calling it “extremely difficult.”
Vaughn’s dramatic restructuring began in early 2023 when he declared AI an “existential threat” to businesses and implemented a weekly workday called “AI Monday,” where employees could focus only on artificial intelligence projects. When hundreds of employees opposed the company-wide change, Vaughn chose replacement over persuasion.
Not surprisingly, tech workers opposed AI adoption the most, according to Vaughn’s Fortune interview. Rather than welcoming AI’s potential, these employees expressed fears about its limitations, while marketing and sales teams demonstrated more openness to new tools and training initiatives.
The CEO invested 20% of his salary in extensive AI education initiatives, including reimbursement for AI tools and accelerated engineering classes. However, employee demotivation and outright refusal to participate led to massive personnel changes that turned the company around in 12 months.
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