IgniteTech CEO Stands by Mass Layoffs: Fired 80% of Staff for AI Resistance, Would Do It Again

By Perplexity News Staff | Published January 13, 2026

In a bold and controversial move that has reverberated through the tech industry, Eric Vaughan, CEO of enterprise software firm IgniteTech, laid off nearly 80% of his workforce in 2023 and early 2024 because employees resisted adopting generative AI technologies. Two years later, Vaughan remains unapologetic, stating he would make the same decision again despite the upheaval.[1][2]

The AI Mandate and Initial Pushback

Vaughan viewed the emergence of tools like ChatGPT in early 2023 as an “existential” threat to businesses that failed to adapt quickly. To enforce company-wide transformation, he instituted “AI Mondays,” weekly sessions where every employee—from sales and marketing to technical staff—had to dedicate time exclusively to AI projects, halting customer calls, budgets, and other routine work.[1][3]

IgniteTech invested heavily, allocating 20% of its payroll to retraining initiatives, providing tools, education, and new AI-focused projects. However, this met with significant resistance. Vaughan described it as “mass resistance, even sabotage,” with employees flatly refusing to participate. Surprisingly, the strongest pushback came not from non-technical roles but from engineers who focused on AI’s limitations rather than its potential.[1][2][3]

“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.”
— Eric Vaughan, IgniteTech CEO[1][2]

Mass Replacement and Restructuring

Over the course of 2023 and into Q1 2024, IgniteTech replaced hundreds of employees, shrinking its staff by nearly 80%. Vaughan emphasized that layoffs were not the initial goal but a necessary response when efforts to change mindsets failed. “Changing minds was harder than adding skills,” he told Fortune.[1]

The company restructured around AI, appointing a Chief AI Officer, Thibault Bridel-Bertomeu, to whom every division now reports. This centralized approach placed AI at the core of operations. Critics, however, highlight the human cost: hundreds of experienced workers were let go into a challenging job market amid economic turbulence.[2]

Results and Vaughan’s Reflection

The gamble paid off financially. Reports indicate IgniteTech’s profits have increased since the overhaul, validating Vaughan’s aggressive strategy in his eyes.[2][4] Reflecting on the decision, he called it “extremely difficult” but essential for survival in an AI-driven landscape. “That culture needed to be built. That was the key,” he said.[1]

Vaughan does not advocate his approach as a model for others, acknowledging its brutality. Yet, he stands firm: “Would absolutely do it again.”[4]

Broader Implications for AI Adoption

IgniteTech’s story underscores tensions in corporate AI transformations. A Writer report cited in related analyses found that one in three workers have actively sabotaged AI rollouts, often due to job fears or reluctance to change.[3] Experts like Paul Roetzer of the Marketing AI Institute recommend clearer communication: Leaders should honestly convey that AI augmentation requires upskilling, not just automation.[3]

While Vaughan’s method succeeded for IgniteTech—a $26 million firm—it raises ethical questions about worker alienation and the pace of technological mandates. Technical staff, who understood AI’s flaws intimately, led the resistance, highlighting a disconnect between executive vision and on-the-ground realities.[2]

Key Outcomes of IgniteTech’s AI Overhaul

Aspect	Before Layoffs	After Layoffs
Workforce Size	Full staff (pre-2023)	~20% retained, hundreds replaced
AI Focus	Limited adoption	Mandatory; Chief AI Officer oversees all
Financials	Baseline	Profits increased[2][4]
Employee Sentiment	Resistance to change	AI-centric culture enforced

Industry Echoes and Future Outlook

The saga has sparked debate. Optimists see it as a prescient pivot; skeptics warn of morale erosion and over-reliance on unproven tech. As AI evolves, more CEOs face similar choices: evolve or perish? IgniteTech’s experience suggests resistance can be costly, but so is alienating your talent pool.

With generative AI now ubiquitous, Vaughan’s unyielding stance serves as a cautionary tale—and potential blueprint—for leaders navigating the AI revolution. Whether emulated or avoided, it marks a pivotal moment in how companies confront technological disruption.

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