AI becomes the enemy of jobs, Ignite laid off 80 percent of its employees

Eric Vaughan, CEO of IgniteTech company, took a decision in the year 2023 which surprised everyone. When about 80% of the company’s employees opposed his policy of adopting Artificial Intelligence (AI), Vaughan showed everyone the way out. While talking to the media, Vaughan said that this decision was very difficult but if he gets a chance again, he will do the same.

 

Eric Vaughan had told the employees of his company in the beginning of 2023 that AI is both a big threat and opportunity for business. After this, he started a course named ‘AI Monday’ for his employees, in which every Monday the employees had to do only AI related work. Hundreds of employees opposed this change. Instead of convincing them, Vaughan thought it better to recruit new people in their place.

 

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The technical team had protested

The technical staff of the company was at the forefront of this protest. He said that AI has limitations and it is not right to adopt it completely. Whereas the marketing and sales team seemed more excited about AI tools and training.

Spending on training, yet opposition increased

The company spent up to 20% of its payroll to teach AI to employees. Classes like ‘Prompt Engineering’ were also organized but many employees stayed away from them. The result was that within a year a large part of the company changed.

 

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CEO’s alert on results

By the year 2024, the company started seeing the benefits of this change. IgniteTech launched two new AI products, bought a big company and grew profits by 75%, but Vaughan clearly said that his method is not for everyone. This was not his plan, but this step had to be taken due to opposition from the employees.

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