IgniteTech Reports 75% EBITDA Two Years After 80% Staff Replacement for AI Adoption

IgniteTech, an enterprise software company, has reported a near 75% EBITDA by late 2024, two years after its CEO, Eric Vaughan, controversially replaced approximately 80% of the company's staff to accelerate artificial intelligence (AI) adoption. This drastic measure, initiated in early 2023, aimed to pivot the company towards an AI-first operational model. The move, as stated in a recent social media post by Rohan Paul, suggests that "a centralized AI organization and 75% EBITDA suggest the bet worked."

The transformation at IgniteTech began with initiatives like "AI Monday" in early 2023, dedicating full company time to hands-on AI work. The company invested significantly, spending "20% of payroll" on reimbursing AI tools and classes, according to the tweet. Despite these efforts, many employees resisted the shift, leading leadership to hire "AI Innovation Specialists" and reorganize every function to report to a new Chief AI Officer, Thibault Bridel-Bertomeu.

This radical restructuring, which saw hundreds of employees replaced throughout 2023 and early 2024, was deemed necessary by Vaughan. He stated that "changing minds was harder than adding skills" and viewed AI adoption as an "existential" transformation for the company. Research from a 2025 enterprise AI adoption report by WRITER indicates that one in three workers admitted to actively sabotaging their company’s AI initiatives, highlighting widespread resistance.

The aggressive strategy yielded significant results for IgniteTech. By late 2024, the company had shipped two patent-pending AI systems, including AI email automation, and was often "delivering production features in 4 days," as noted in the tweet. The business maintained its "9-figure" revenue while achieving the high EBITDA and completing a major acquisition of Khoros.

While IgniteTech's approach proved financially successful, it contrasts with other industry leaders who advocate for reskilling existing employees. Joshua Wöhle, CEO of AI upskilling firm Mindstone, points to companies like Ikea and Klarna that focused on upskilling their workforce. Vaughan, however, maintains that success hinges on collective alignment, emphasizing that "Everybody’s got to be in the same boat, rowing in the same direction."