IgniteTech CEO Replaced 80% of Staff Over AI Resistance, Says He’d Do It Again

Is artificial intelligence a bane or a boon? That’s a tough question to answer, but IgniteTech CEO Eric Vaughan clearly sees it as an opportunity. In 2023, Vaughan replaced nearly 80% of the company’s workforce, believing that generative AI represented an existential transformation. What’s more? He says he’d do it again if needed.

"It is more difficult to change minds than adding skills," Vaughan explained to a news publication, further stating that although layoffs were not initially the company's idea, AI adoption opposition left him with no option.

IgniteTech, a software company with a global presence, was transformed overnight when Vaughan announced that the company had "seen the light" regarding AI. He cautioned his employees that artificial intelligence was not just a fad, it was an existential change for every business, not only in technology but also in all sectors. According to him, businesses that did not adopt AI were looking at an existential threat.

To drive the point home, Vaughan told his remote workforce in an all-hands meeting that the company’s future would revolve around AI. “We’re going to give a gift to each of you,” he said. That “gift” was training: reimbursements for AI tools, access to prompt-engineering classes, and workshops with outside experts. But not everyone embraced the change. For those unwilling to adapt, the company brought in replacements who could.

The action is part of a larger trend sweeping through industries as firms reorganise based on AI. From Silicon Valley behemoths to consumer product manufacturers, layoffs are increasingly linked to automation. Microsoft, for instance, has laid off approximately 15,000 workers in two large rounds, citing effectiveness and AI modernisation. Meta, Google, Amazon, and IBM have likewise made such reductions. 

The transition isn't confined to the West. Indian ad-tech firm InMobi has planned to achieve 80% automation in software coding by this year-end, a development that hints at further job cuts in near future.

For critics, these layoffs are proof that AI is more bane than boon, threatening millions of livelihoods. But for Vaughan and leaders like him, the short-term pain is necessary for long-term survival. 

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