80% of Employees laid off for failing to embrace AI quickly enough

The age of artificial intelligence has created unprecedented concerns and opportunities for businesses globally. Leaders are increasingly confronted with the requirement to rapidly adopt AI to remain competitive, while employees experience pressure to adapt to fresh technologies.

Eric Vaughan, CEO of enterprise-software powerhouse IgniteTech, openly reflected on the most extreme decision of his decades-long career. In early 2023, convinced that generative AI signified an “existential” shift, Vaughan realized much of his group wasn’t completely aligned. His reaction was uncompromising: he rebuilt the organization from the ground up, replacing almost 80% of staff within a year, according to headcount reviewed by Fortune.

“That was not our goal. It was extremely difficult … But changing minds was harder than adding skills,” Vaughan told Fortune, stating the harsh reality of the move while asserting he would repeat it if needed.

Recognizing the Urgency of AI

Vaughan explained the moment as a significant turning point. “In early 2023, we saw the light,” he said in an August 2025 interview. He stated that he believes “literally every company is facing an existential threat by this transformation.” Where others saw potential, Vaughan perceived urgency: without embracing AI, even the most stable organizations risk obsolescence.

To address the challenge, he called an all-hands meeting with the global team, reorganizing priorities in AI. “We’re going to give a gift to each of you. And that gift is tremendous investment of time, tools, education, projects … to give you a new skill,” he described. IgniteTech introduced reimbursements for AI tools, prompt-engineering sessions, and brought in external experts to promote the technology.

“AI Mondays” and Cultural Transformation

Vaughan instituted a bold initiative named “AI Monday,” mandating that employees spend the day exclusively on AI initiatives. “You couldn’t have customer calls; you couldn’t work on budgets; you had to only work on AI projects,” he stated, highlighting that the mandate applied across departments not just technical staff but sales, marketing, and operations.

Despite heavy investment, almost 20% of payroll, resistance emerged, that includes outright sabotage. Vaughan cited, “In those early days, we did get resistance, we got flat-out, ‘Yeah, I’m not going to do this’ resistance. And so we said goodbye to those people.” Surprisingly, technical employees were often the most resistant, while marketing and sales embraced AI with enthusiasm.

The Payoff of Radical Change

After reorganizing and creating a team of AI adopters, IgniteTech received a remarkable outcome. By the end of 2024, the organization had introduced two patent-pending AI solutions, that includes the Eloquens AI platform for email automation, and finished a significant acquisition. Vaughan reported strong profitability, with margins almost 75% EBITDA.

“Give people the ability to multiply themselves [with AI] and do things at a pace,” Vaughan stated, highlighting the speed and efficiency gains from the AI-first workforce. In the months after, the company continued hiring worldwide for AI Innovation Specialists across marketing, sales, finance, and engineering.

Source: Fortune

FAQs:

Q1: Who is Eric Vaughan?
Eric Vaughan is the CEO of IgniteTech, an enterprise software company. He is recognized for leading radical transformations to adopt AI across the company.

Q2: What is IgniteTech?
IgniteTech is an enterprise-software company concentrated on technology solutions for businesses. They recently highlighted AI innovation and workforce transformation.