Two years after a drastic purge, a CEO insists AI saved his company. Is this ruthless clarity or the start of a dangerous playbook?
Two years after showing the door to most of his staff, Eric Vaughan is still betting big on machines over mindsets. The IgniteTech chief installed AI Mondays, poured resources into training, and swapped unenthusiastic teams for AI-first hires. He now points to fatter margins and a stack of patent filings as proof the pivot worked, telling Fortune it was a hard call he would not recommend lightly. His story unfolds as tech heavyweights like Amazon, Microsoft and Meta rewire their own operations around AI.
A radical decision to embrace AI
In 2023, Eric Vaughan, CEO of IgniteTech, made a polarizing call: he dismissed 80% of his workforce due to apathy toward adopting artificial intelligence. Two years later, he maintains that the move not only kept the company afloat but also launched a new phase of growth.
What led to this drastic choice?
IgniteTech, a specialist in enterprise software, reached a breaking point as tools like ChatGPT and other AI systems became central to the industry. Vaughan pushed to embed AI across operations, yet many engineers and developers resisted, skipped training, and underdelivered on AI initiatives.
After repeated attempts to win support, he took an unprecedented step: roughly 80% of staff were replaced within a year. The shock was immediate, but Vaughan argues the resistance was blocking IgniteTech from realizing its potential.
“AI Mondays” and a new corporate culture
Instead of simply restaffing, the company reorganized around AI Mondays, weekly sessions focused on hands-on projects, experiments, and use cases. For Vaughan, this ritual signaled full alignment with an AI-first mindset.
Significant resources went into training for those who remained. The expectation became explicit: from developers to managers, everyone had to master AI tools or step aside.
The outcomes that changed the narrative
Two years on, the bet appears to have worked. Profit margins climbed to 75%, driven by leaner operations and sharp productivity gains, and the company filed multiple patents for AI-driven innovations. Early criticism gave way to results that reinforced the strategy.
Vaughan concedes the transition was rough. Departures strained customer continuity and team cohesion, but he frames the upheaval as the foundation of IgniteTech’s reset.
A broader shift in the tech world
IgniteTech is part of a wider movement as tech leaders reorganize around AI, including Amazon, Meta, and Microsoft, though often through more incremental changes. Vaughan admits his path is not universal, but says it was essential for his business.
Looking back, he puts it plainly: “It wasn’t just about AI, it was about reinventing what our company stood for.” Whether seen as foresight or ruthlessness, the message is clear: adapt quickly or risk falling behind.