Two years after drastic purge, CEO insists AI saved his company. Is this merciless clarity or the start of a dangerous playbook?
Two years after opening the door to most of his collaborators, Eric Vaughan is still betting big on machines rather than on mentalities. The head of IgniteTech installed AI Mondays, devoted resources to training, and traded unenthusiastic teams for AI-focused hires. He now points to larger margins and a stack of patent filings as proof that the pivot worked, telling Fortune that it was a difficult decision that he wouldn’t recommend lightly. Its story unfolds as tech heavyweights like Amazon, Microsoft and Meta review their own operations around AI.
A radical decision to adopt AI
In 2023, IgniteTech CEO Eric Vaughan made a polarizing call: he fired 80% of its workforce due to apathy towards the adoption of artificial intelligence. Two years later, he says the move not only kept the company afloat, but also launched a new phase of growth.
What led to this radical choice?
Enterprise software specialist IgniteTech has reached a breaking point as tools like ChatGPT and other AI systems have become essential to the industry. Vaughan pushed to integrate AI into all operations, but many engineers and developers resisted, skipped training, and failed to implement AI initiatives.
After repeated attempts to gain support, he took an unprecedented step: around 80% of the staff was replaced within a year. The shock was immediate, but Vaughan says the resistance was preventing IgniteTech from realizing its potential.
“AI Mondays” and a new corporate culture
Instead of simply renewing its staff, the company reorganized itself around AI Mondaysweekly sessions focused on practical projects, experiments and use cases. For Vaughan, this ritual marked a complete alignment with an AI-driven mindset.
Significant resources were devoted to training those who remained. The expectation has become explicit: from developers to managers, everyone must master AI tools or step aside.
The results that changed the narrative
Two years later, the bet seems to have paid off. Profit margins increased to 75%driven by more streamlined operations and significant productivity gains, and the company has filed several patents for AI-based innovations. The first critiques led to results that strengthened the strategy.
Vaughan admits the transition was difficult. The departures strained customer continuity and team cohesion, but he sees the upheaval as the foundation for IgniteTech’s reset.
A broader shift in the world of technology
IgniteTech is part of a broader movement as technology leaders reorganize around AI, including Amazon, Meta and Microsoftbut often through more incremental changes. Vaughan admits his path isn’t universal, but says it was essential to his business.
Looking back, he says it clearly: “It wasn’t just about AI, it was about reinventing what our company stood for.” » Whether seen as forward-thinking or ruthless, the message is clear: adapt quickly or risk falling behind.