Brutal CEO cut 80% of workers who rejected AI - 2 years later he says he would do it again

When most leaders cautiously tested AI, Eric Vaughan, the CEO of IgniteTech, took a gamble that shocked the tech world. The IgniteTech CEO replaced nearly 80% of his staff in a bold move to make artificial intelligence the company’s foundation. His decision, controversial yet transformative, shows the brutal reality of adapting to disruption.

Vaughan's story shows that businesses must change their culture, not just their technology, to thrive in the AI era.

In early 2023, IgniteTech CEO Eric Vaughan faced one of his toughest decisions. Convinced that artificial intelligence was not just a tool but an existential shift for every business, he dismantled his company’s traditional structure.


ALSO READ: Orca attack mystery: What really happened to marine trainer Jessica Radcliffe

Why did IgniteTech face resistance to AI?

When Vaughan first pushed the company to use AI, he spent a lot of money on training. Mondays turned into "AI Mondays," which were only for learning new skills, trying out new tools, and starting pilot projects. IgniteTech paid for employees to take AI-related courses and even brought in outside experts to help with adoption, as per a report by Fortune.

However, resistance emerged rapidly. It was surprising that the most pushback came from technical employees, not sales or marketing. A lot of people were doubtful about what AI could do, focusing on what it couldn't do instead of what it could do. Some people openly refused to take part, while others worked against the projects. Vaughan said that the resistance was so strong that it was almost sabotage.

His experience is backed up by research. According to a 2025 report on enterprise AI adoption, one in three workers said they were against or even sabotaging AI projects, usually because they were afraid of losing their jobs or were frustrated with tools that weren't fully developed, as per a report by Fortune.

ALSO READ: Apple iPhone 17 Air and Pro get surprise release date change — here’s the new timeline

How did Vaughan rebuild the company?

Vaughan came to the conclusion that believing in AI was not up for debate. Instead of making his current employees change, he started hiring new people who shared his vision. He called these new hires "AI innovation specialists." This change affected every department, including sales and finance, as per a report by Fortune.

Thibault Bridel-Bertomeu, IgniteTech's new chief AI officer, was a key hire. Vaughan reorganized the company so that every division reported to AI after he joined. This centralization stopped things from being done twice and made it easier for people to work together, which is a common problem when companies use AI.

The change was expensive, disruptive, and emotionally draining, but Vaughan says it had to happen.He said, "It was harder to change minds than to add skills,” as per a report by Fortune.

What can other companies learn from this?

Even though it hurt, IgniteTech got a lot of benefits. By the end of 2024, it had released two AI solutions that were still in the patent process. One of them was Eloquens AI, an email automation platform. Revenue remained in the nine-figure range, with profit margins near 75% Ebitda. During the chaos, the company even made a big purchase.

ALSO READ: Alien Attack in November? Harvard scientists warn mysterious space object could be advanced technology

Vaughan's story teaches us a crucial lesson: using AI is as much about culture as it is about technology. While companies like Ikea focus on augmenting workers instead of replacing them, Vaughan chose radical restructuring to ensure alignment. Both methods show how hard it is for businesses to find a balance between trust and innovation.

FAQs

Why did Eric Vaughan fire so many people at IgniteTech?
He thought that people who didn't want to use AI would hurt the company's future, so he decided to rebuild with people who shared his vision.

What happened after IgniteTech changed its AI?
The company introduced new AI products, set up a central AI division, and made more money, even though the change was hard.