Latest news with #IgniteTech
Time of India
a day ago
- Business
- Time of India
CEO Eric Vaughan laid off nearly 80% of employees: How AI literacy could make or break your career
In early 2023, IgniteTech CEO Eric Vaughan made a move that shook the tech world. He laid off nearly 80% of his workforce. The reason? Widespread resistance to adopting artificial intelligence (AI). Vaughan had introduced 'AI Mondays,' a weekly day dedicated entirely to AI projects. But when employees, especially the technical teams, pushed back, he chose replacement over persuasion. Looking back, Vaughan described the decision as 'extremely difficult,' yet he said he would do it again, according to the Fortune. For students and professionals navigating today's workplace, this isn't just a headline — it's a wake-up call. AI literacy is no longer optional. It's a skill that can shape careers, open doors, and, in some cases, determine whether you keep your job. Why AI literacy matters AI literacy isn't just about learning a new software or tool. It's about understanding how AI works, its strengths and limitations, and the broader ethical questions it raises. It's about knowing how to use AI to solve real-world problems, not just following instructions. When you build AI literacy, you approach technology with curiosity rather than fear. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Your Finger Shape Says a Lot About Your Personality, Read Now Tips and Tricks Undo You see opportunities instead of obstacles. And in a world where AI is becoming central to almost every industry, that mindset is everything. For professionals: Staying ahead of the curve For those already in the workforce, AI literacy can be a career game-changer. It allows you to integrate AI into your workflows, make faster decisions, and find creative solutions to problems. Those who resist risk being left behind, overtaken by colleagues or competitors who are comfortable leveraging AI to their advantage. But AI literacy isn't just a technical skill. It sharpens your ability to think critically, make ethical choices, and solve complex problems creatively. Professionals who master AI aren't just workers, they become indispensable contributors in a tech-driven world. For students: Preparing for the future For students stepping into the workforce, the stakes are just as high. Early exposure to AI, whether through projects, coursework, or personal experimentation, can give you an edge in a competitive job market. Understanding AI helps you meet the expectations of future employers and shows that you're adaptable, curious, and proactive. Students who embrace AI as a collaborator, rather than a threat, also gain confidence in problem-solving and innovation. Learning to work with AI early sets the stage for creative thinking and equips you to navigate challenges in professional settings with ease. How to navigate the AI landscape Learning AI isn't just about tools or coding, it's a mindset. It's about seeing AI as something that can augment human capabilities, not replace them. The more you engage with AI, experiment, and reflect on its outcomes, the better you understand its potential, and its limits. Ethics also matter. Knowing the societal impact of AI ensures that you use it responsibly, balancing innovation with accountability. In other words, AI literacy isn't just a career skill — it's a professional responsibility. The story of IgniteTech's workforce overhaul is a stark reminder: in a world shaped by AI, failing to adapt is risky. For students entering the job market and professionals looking to stay relevant, investing time in AI literacy isn't just smart, it's essential. When you embrace AI, you don't just keep pace — you gain the tools to navigate complexity, enhance your work, and contribute to a future where technology works for people, not the other way around. TOI Education is on WhatsApp now. Follow us here. Ready to navigate global policies? Secure your overseas future. Get expert guidance now!
Time of India
2 days ago
- Business
- Time of India
Brutal CEO cut 80% of workers who rejected AI - 2 years later he says he would do it again
When most leaders cautiously tested AI, Eric Vaughan, the CEO of IgniteTech, took a gamble that shocked the tech world. The IgniteTech CEO replaced nearly 80% of his staff in a bold move to make artificial intelligence the company's foundation. His decision, controversial yet transformative, shows the brutal reality of adapting to disruption. Vaughan's story shows that businesses must change their culture, not just their technology, to thrive in the AI era. In early 2023, IgniteTech CEO Eric Vaughan faced one of his toughest decisions. Convinced that artificial intelligence was not just a tool but an existential shift for every business, he dismantled his company's traditional structure. ALSO READ: Orca attack mystery: What really happened to marine trainer Jessica Radcliffe Why did IgniteTech face resistance to AI? Live Events When Vaughan first pushed the company to use AI, he spent a lot of money on training. Mondays turned into "AI Mondays," which were only for learning new skills, trying out new tools, and starting pilot projects. IgniteTech paid for employees to take AI-related courses and even brought in outside experts to help with adoption, as per a report by Fortune. However, resistance emerged rapidly. It was surprising that the most pushback came from technical employees, not sales or marketing. A lot of people were doubtful about what AI could do, focusing on what it couldn't do instead of what it could do. Some people openly refused to take part, while others worked against the projects. Vaughan said that the resistance was so strong that it was almost sabotage. His experience is backed up by research. According to a 2025 report on enterprise AI adoption, one in three workers said they were against or even sabotaging AI projects, usually because they were afraid of losing their jobs or were frustrated with tools that weren't fully developed, as per a report by Fortune. ALSO READ: Apple iPhone 17 Air and Pro get surprise release date change — here's the new timeline How did Vaughan rebuild the company? Vaughan came to the conclusion that believing in AI was not up for debate. Instead of making his current employees change, he started hiring new people who shared his vision. He called these new hires "AI innovation specialists." This change affected every department, including sales and finance, as per a report by Fortune. Thibault Bridel-Bertomeu, IgniteTech's new chief AI officer, was a key hire. Vaughan reorganized the company so that every division reported to AI after he joined. This centralization stopped things from being done twice and made it easier for people to work together, which is a common problem when companies use AI. The change was expensive, disruptive, and emotionally draining, but Vaughan says it had to said, "It was harder to change minds than to add skills,' as per a report by Fortune. What can other companies learn from this? Even though it hurt, IgniteTech got a lot of benefits. By the end of 2024, it had released two AI solutions that were still in the patent process. One of them was Eloquens AI, an email automation platform. Revenue remained in the nine-figure range, with profit margins near 75% Ebitda. During the chaos, the company even made a big purchase. ALSO READ: Alien Attack in November? Harvard scientists warn mysterious space object could be advanced technology Vaughan's story teaches us a crucial lesson: using AI is as much about culture as it is about technology. While companies like Ikea focus on augmenting workers instead of replacing them, Vaughan chose radical restructuring to ensure alignment. Both methods show how hard it is for businesses to find a balance between trust and innovation. FAQs Why did Eric Vaughan fire so many people at IgniteTech? He thought that people who didn't want to use AI would hurt the company's future, so he decided to rebuild with people who shared his vision. What happened after IgniteTech changed its AI? The company introduced new AI products, set up a central AI division, and made more money, even though the change was hard.
Time of India
2 days ago
- Business
- Time of India
CEO who laid off 80% employees globally for refusing to adopt AI, says after two years that he…
IgniteTech CEO Eric Vaughan stands by his radical decision to replace nearly 80% of his workforce in 2023 after employees resisted the company's aggressive artificial intelligence adoption mandate. The enterprise software executive told Fortune he would repeat the mass personnel overhaul despite describing it as "extremely difficult." Vaughan's dramatic restructuring began in early 2023 when he declared AI an "existential threat" to businesses and implemented "AI Mondays" – weekly workdays where employees could only focus on artificial intelligence projects. When hundreds of workers pushed back against the company-wide transformation, Vaughan chose replacement over persuasion. Technical staff resisted AI transformation most Surprisingly, technical staff showed the most resistance to AI adoption, according to Vaughan's Fortune interview. These employees voiced concerns about AI limitations rather than embracing its capabilities, while marketing and sales teams proved more receptive to the new tools and training programs. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Use an AI Writing Tool That Actually Understands Your Voice Grammarly Install Now Undo The CEO invested 20% of payroll in mass AI education initiatives, including reimbursements for AI tools and prompt engineering classes. However, employee sabotage and flat refusal to participate led to the wholesale personnel changes that reshaped the company over 12 months. CEO's mass firing strategy delivered 75% profit margins The painful transformation delivered substantial returns by 2024. IgniteTech launched two patent-pending AI solutions and maintained near 75% EBITDA while completing a major acquisition, demonstrating the financial viability of Vaughan's aggressive approach. Research from AI platform WRITER reveals Vaughan's experience reflects broader industry challenges, with one-third of workers actively sabotaging corporate AI initiatives. The study shows 41% of millennial and Gen Z employees resist AI implementation through various forms of non-compliance. Despite the success metrics, Vaughan doesn't recommend his mass replacement strategy to other leaders, calling it an unintended consequence of cultural resistance rather than a planned approach. AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Yahoo
3 days ago
- Business
- Yahoo
This CEO laid off nearly 80% of his staff because they refused to adopt AI fast enough. 2 years later, he says he'd do it again
Eric Vaughan, CEO of enterprise-software powerhouse IgniteTech, is unwavering as he reflects on the most radical decision of his decades-long career. In early 2023, convinced that generative AI was an 'existential' transformation, Vaughan looked at his team and saw a workforce not fully on board. His ultimate response: He ripped the company down to the studs, replacing nearly 80% of staff within a year, according to headcount figures reviewed by Fortune. Over the course of 2023 and into the first quarter of 2024, Vaughan said IgniteTech replaced hundreds of employees, declining to disclose a specific number. 'That was not our goal,' he told Fortune. 'It was extremely difficult … But changing minds was harder than adding skills.' It was, by any measure, a brutal reckoning—but Vaughan insists it was necessary, and says he'd do it again. For Vaughan, the writing on the wall was clear and dramatic. 'In early 2023, we saw the light,' he told Fortune in an interview, adding that he believed every tech company was facing a crucial inflection point around adoption of artificial intelligence. 'Now I've certainly morphed to believe that this is every company, and I mean that literally every company, is facing an existential threat by this transformation.' Where others saw promise, Vaughan saw urgency—believing that failing to get ahead on AI could doom even the most robust business. He called an all-hands meeting with his global, remote team. Gone were the comfortable routines and quarterly goals. Instead, his message was direct: Everything would now revolve around AI. 'We're going to give a gift to each of you. And that gift is tremendous investment of time, tools, education, projects … to give you a new skill,' he explained. The company began reimbursing for AI tools and prompt engineering classes, and even brought in outside experts to evangelize. 'Every single Monday was called 'AI Monday,'' Vaughan said, with his mandate for staff that they could only work on AI. 'You couldn't have customer calls, you couldn't work on budgets, you had to only work on AI projects.' He said this happened across the board, not just for tech workers, but also for sales, marketing, and everybody at IgniteTech. 'That culture needed to be built. That was… that was the key.' This was a major investment, he added: 20% of payroll was dedicated to a mass-learning initiative, and it failed because of mass resistance, even sabotage. Belief, Vaughan discovered, is a hard thing to manufacture. '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.' The pushback: Why didn't they get on board? Vaughan was surprised to find it was often the technical staff, not marketing or sales, who dug in their heels. They were the 'most resistant,' he said, voicing various concerns about what the AI couldn't do, rather than focusing on what it could. The marketing and salespeople were enthused by the possibilities of working with these new tools, he added. This friction is borne out by broader research. According to the 2025 enterprise AI adoption report by WRITER, an AI platform that specifically helps enterprise clients with AI integration, one in three workers say they've 'actively sabotaged' their company's AI rollout—a number that jumps to 41% of millennial and Gen Z employees. This can take the form of refusing to use AI tools, intentionally generating low-quality outputs, or avoiding training altogether. Many act out due to fears that AI will replace their jobs, while others are frustrated by lackluster AI tools or unclear strategy from leadership. WRITER's Chief Strategy Officer Kevin Chung told Fortune the 'big eye-opening thing' from this survey was the human element of AI resistance. 'This sabotage isn't because they're afraid of the technology … It's more like there's so much pressure to get it right, and then when you're handed something that doesn't work, you get frustrated.' He added that WRITER's research shows that workers often don't trust where their organizations are headed. 'When you're handed something that isn't quite what you want, it's very frustrating, so the sabotage kicks in, because then people are like, 'Okay, I'm going to run my own thing. I'm going to go figure it out myself.'' You definitely don't want this kind of 'shadow IT' in an organization, he added. Vaughan says he didn't want to force anyone. 'You can't compel people to change, especially if they don't believe.' He added that belief was really the thing he needed to recruit for. Company leadership ultimately realized they'd have to launch a massive recruiting effort for what became known as 'AI Innovation Specialists.' This applied across the board, to sales, finance. marketing, everywhere. Vaughan said this time was 'really difficult' as things inside the company were 'upside down … We didn't really quite know where we were or who we were yet.' A couple key hires helped, starting with the person who became IgniteTech's chief AI officer, Thibault Bridel-Bertomeu. That led to a full reorganization of the company that Vaughan called 'somewhat unusual.' Essentially, every division now reports into the AI organization, regardless of domain. This centralization, Vaughan says, prevented duplication of efforts and maximized knowledge sharing—a common struggle in AI adoption, where WRITER's survey shows 71% of the C-suite at other companies say AI applications are being created in silos and nearly half report their employees left to 'figure generative AI out on their own.' No pain, no gain? In exchange for this difficult transformation, IgniteTech reaped extraordinary results. By the end of 2024, the company had launched two patent-pending AI solutions, including a platform for AI-based email automation (Eloquens AI), with a radically rebuilt team. Financially, IgniteTech remained strong. Vaughan disclosed that the company, which he said is in the nine-figure revenue range, finished 2024 at 'near 75% EBITDA'—all while completing a major acquisition, Khoros. 'You multiply people … give people the ability to multiply themselves and do things at a pace,' he said, touting the company's ability to build new customer-ready products in as little as four days—an unthinkable timeline in the old regime. What does Vaughan's story say for others? On one level, it's a case study in the pain and payoff of radical change management. But his ruthless approach arguably addresses many challenges identified in the WRITER survey: lack of strategy and investment, misalignment between IT and business, and the failure to engage champions who can unlock AI's benefits. The 'boy who cried wolf' problem To be sure, IgniteTech is far from alone in wrestling with these challenges. Joshua Wöhle is the CEO of Mindstone, a firm similar to WRITER that provides AI upskilling services to workforces, training hundreds of employees monthly at companies including Lufthansa, Hyatt, and NBA teams. He recently discussed the two approaches described by Vaughan—upskilling and mass replacement—in an appearance on BBC Business Today. Wöhle contrasted the recent examples of Ikea and Klarna, arguing the former's example shows why it's better to 'reskill' existing employees. Klarna, a Swedish buy-now pay-later firm, drew considerable publicity for a decision to reduce members of its customer support staff in a pivot to AI, only to rehire for the same roles. 'We're near the point where [AI is] more intelligent than most people doing knowledge work. But that's precisely why augmentation beats automation,' Wöhle wrote on LinkedIn. A representative for Klarna told Fortune the company did not lay off employees, but has instead adopted several approaches to its customer service, which is managed by outsourced customer-service providers who are paid according to the volume of work required. The launch of an AI customer-service assistant reduced the workload by the equivalent of 700 full-time agents—from roughly 3,000 to 2,300—and the third-party providers redeployed those 700 workers to other clients, according to Klarna. Now that the AI customer service agent is 'handling more complex queries than when we launched,' Klarna says, that number has fallen to 2,200. Klarna says its contractor has rehired just two people in a pilot program designed to combine highly trained human support staff with AI to deliver outstanding customer service. In an interview with Fortune, Wöhle said one client of his has been very blunt with his workers, ordering them to dedicate all Fridays to AI retraining, and if they didn't report back on any of their work, they were invited to leave the company. He said it can be 'kinder' to dismiss workers who are resistant to AI: 'The pace of change is so fast that it's the kinder thing to force people through it.' He added that he used to think that if he got all workers to really love learning, then that could help Mindstone make a real difference, but he discovered after training literally thousands of people that 'most people hate learning. They'd avoid it if they can.' Wöhle attributed much of the AI resistance in the workforce to a 'boy who cried wolf' problem from the tech sector, citing NFTs and blockchain as technologies that were billed as revolutionary but 'didn't have the real effect' that tech leaders promised. 'You can't really blame them' for resisting, he said. Most people 'get stuck because they think from their work flow first,' he added, and they conclude AI is overhyped because they want AI to fit into their old way of working. 'It takes a lot more thinking and a lot more kind of prodding for you to change the way that you work,' but once you do, you see dramatic increases. A human can't possibly keep five call transcripts in their head while you're trying to write a proposal to a client, he offers, but AI can. Ikea echoed Wöhle when reached for comment, saying that its 'people-first AI approach focuses on augmentation, not automation.' A spokesperson said Ikea is using AI to automate tasks, not jobs, freeing up time for value-added, human-centric work. The WRITER report notes that companies with formal AI strategies are far more likely to succeed, and those who heavily invest in AI outperform their peers by a large margin. But, as Vaughan's experience shows, investment without belief and buy-in can be wasted energy. 'The culture needed to be built. Ultimately, we ended up having to go out and recruit and hire people that were already of the same mind. Changing minds was harder than adding skills.' For Vaughan, there's no ambiguity. Would he do it again? He doesn't hesitate: He'd rather endure months of pain and build a new, AI-driven foundation from scratch than let an organization drift into irrelevance. 'This is not a tech change. It is a cultural change, and it is a business change.' He said he doesn't recommend that others follow his lead and swap out 80% of their staff. 'I do not recommend that at all. That was not our goal. It was extremely difficult.' But at the end of the day, he added, everybody's got to be in the same boat, rowing in the same direction. Otherwise, 'we don't get where we're going.' This story was originally featured on Sign in to access your portfolio
Malaysian Reserve
10-07-2025
- Business
- Malaysian Reserve
IgniteTech Launches Next Phase for Khoros, Centered on AI and Customer Leadership
Company accelerates AI roadmap, brings in community experts, and reinforces commitment to customers following Khoros acquisition AUSTIN, Texas, July 10, 2025 /PRNewswire/ — IgniteTech, the AI-first enterprise software company, today announced a series of strategic investments and customer-focused initiatives to advance the Khoros platform. The announcement marks the next phase of growth following IgniteTech's acquisition of Khoros in May 2025. 'With the acquisition of Khoros, we're not just investing in the product, we're rebuilding it,' said Eric Vaughan, CEO of IgniteTech and Khoros. 'We're partnering with customers, bringing in experts, and applying the same operating discipline we've used to successfully transform dozens of enterprise software companies. Our focus is on delivering AI-powered value at scale by leveraging what made the Khoros Community solution a leader in the first place.' IgniteTech is accelerating the rollout of new AI features across the Khoros platform and reaffirming its commitment to customer collaboration, community-led innovation, and product modernization. All future innovation will be built on Aurora, Khoros's modern platform architecture, which is optimized for AI integration and scalable customer engagement. As part of this strategy, IgniteTech is expanding its engagement with Khoros customers and the global community ecosystem. Michael Puhala, who continues in his role as Chief Community Evangelist at Khoros, will lead customer conversations and act as a strategic liaison to the company's global network of community professionals. 'Khoros has a strong heritage, and I'm excited to see IgniteTech building on that with urgency and clarity,' said Puhala. 'This is a real opportunity to bring community leadership into the AI era, and to make sure customers have a voice in shaping what comes next.' To further strengthen its focus on community engagement, IgniteTech is collaborating with Jake McKee, a globally recognized community strategist known for his work with brands including LEGO, Apple, and EA Games. McKee joins as a strategic advisor, helping to align Khoros's community strengths with IgniteTech's product vision and operational discipline. 'IgniteTech's approach to Khoros puts people and customers at the center,' said McKee. 'This is about combining the best of Khoros's legacy with the clarity, focus, and AI capabilities needed to lead the next era of community.' IgniteTech also announced its sponsorship of the Community-Led World Conference at London Community Week 2025. At the event, Puhala, McKee, and IgniteTech's Chief AI Officer, Thibault Bridel-Bertomeu, met with global community leaders and Khoros customers as part of a focused listening initiative. The team's goal was to better understand the ecosystem IgniteTech now stewards, both the needs of current Khoros users and the broader direction of the global community management space. IgniteTech is designing the next generation of Khoros to meet the shift from search-driven support to AI-powered community ecosystems. New capabilities will help customers maintain brand presence in AI-generated answers, elevate trusted content from high-contributing users, and guide members from passive consumption to active participation. Aurora is the future of the platform, and all new innovation will be delivered there. While Classic Community will continue to be supported, IgniteTech is taking a measured approach to migrations, ensuring that customers only move when the platform meets or exceeds their needs 'Khoros is moving forward with a clear plan, a dedicated team, and customers at the center,' said Vaughan. 'We're not maintaining the old model. We're building what comes next.' About IgniteTechIgniteTech is a global, AI-first enterprise software company. With a track record of successful company and technology acquisitions with rapid innovation, IgniteTech's solutions power the world's businesses. Since retooling the company in 2024 to become an AI innovation organization, IgniteTech has created two brand new, patent-pending, AI-powered innovations, Eloquens AI and MyPersonas, along with AI capabilities across its entire portfolio of products. For more information, engage with us at khoros@ Media Contact: media@ Follow: LinkedIn / X About KhorosKhoros' award-winning enterprise software makes it easier for complex brands to engage with customers at scale across all digital, social and brand-owned channels. Whether it is for service and support, communications or sales, the solutions powered by advanced automation and AI unlock more consistent, personalized and helpful omni-channel interactions between brands and their audiences. Khoros serves 2,000 of the world's most reputable companies, including a third of the Fortune 100, and consistently receives recognition as a Best Place to Work. In May 2025, Khoros was acquired by IgniteTech. For more information, please visit Follow: LinkedIn / X
