“I fired 80% of my staff for refusing AI—and I’d do it again,” says CEO, now boasting record profits

Ethan Collins
"I fired 80% of my staff for refusing AI—and I’d do it again," says CEO, now boasting record profits 4

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Imagine walking into your office on Monday and being told: “It’s AI or the highway.” That’s essentially what happened at IgniteTech, where CEO Eric Vaughan took a bold gamble on artificial intelligence, radically reshaping his company — and he has zero regrets.

From skepticism to All-In: one CEO’s gamble

Just two years ago, AI wasn’t winning over everyone. While more and more companies today are putting artificial intelligence to work, back then, this technology was far from being unanimously embraced. But Eric Vaughan, CEO of IgniteTech, decided to make a move that shook his entire organization. And looking back, he’d do it again in a heartbeat.

“Love AI or leave”: the radical message in 2023

Artificial intelligence: you either love it, or you’re out of the company. That, in a nutshell, was the message Vaughan delivered to his employees in 2023. There was no beating around the bush — he made the call to fire everyone who lacked enthusiasm for embracing AI. When the dust settled, 80% of IgniteTech's staff were shown the door.

In an interview with Fortune, Vaughan looked back on this turning point for his company.

“At the start of 2023, we saw the light,”

he declared. At that point, businesses everywhere were scrambling to keep up with the meteoric rise of ChatGPT and similar tools. For Vaughan, whose company specializes in enterprise software, one thing was crystal clear: AI wasn’t just a fad. For him, adopting these tools immediately wasn’t optional — it was a matter of corporate survival. Failing to do so, in his eyes, would mean a swift end to his company. He doesn’t hesitate to describe it as an “existential transformation” that required as many employees as possible to get on board.

AI mondays: a culture shock

Determined to get everyone moving in the same direction, Vaughan wasted no time initiating the now-infamous “AI Mondays.” Every Monday, IgniteTech employees were permitted to work only on projects related to AI — no client calls, no working on the budget, just pure AI focus for the entire team. The aim? To build a whole new company culture centered around artificial intelligence and its uses.

And in a bid to support his staff, Vaughan went big on training — investing heavily in education and tools so that everyone could pick up fresh skills. He told his teams:

“We’re going to give each of you a gift. And that gift is a massive investment in time, in tools, in education, and in projects… to give you a new skill set.”

But, as is often the case with gifts, not everyone wanted to unwrap theirs.

Chemistry problems: staff push back against AI

At the same time, Vaughan saw something else: a large portion of IgniteTech staff simply showed zero motivation or enthusiasm for AI. Some intentionally produced shoddy work when using the new tools; others conveniently “forgot” to attend prompt engineering training. Ironically, it was often the technical staff — engineers and developers — who seemed most reluctant to dive in.

For Vaughan, there was no time to waste trying to win over people who, in his mind, refused to adapt to a necessary evolution.

“So, we said goodbye to those people,”

he summarized for Fortune. Within a year, nearly 80% of the workforce had been replaced by new hires, chosen specifically for their AI compatibility.

Profits, patents — and no regrets

Fast forward two years: not only does Vaughan have no regrets, but IgniteTech is reporting operating margins approaching 75%. The company has even filed two patents for AI-based solutions.

“It was extremely difficult, but changing mindsets was harder than adding new skills,”

he said without a flicker of doubt, adding that he “would do it all over again without hesitation.”

For some, Vaughan’s story may sound a bit ruthless. Still, it’s increasingly common across the tech industry, where giants like Amazon, Microsoft, and Meta aren’t shy about reshuffling teams around AI projects. That said, Vaughan insists he’s not encouraging others to follow in his footsteps.

“I absolutely do not recommend this. It was never our goal. It was extremely difficult,”

he concluded.

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  1. “a bit ruthless” ??? How about a lot perverse. This man hired those people, so he’s the failure, not them. This generation of “AI” is dangerous and smart people know it.

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