“Every single Monday was called ‘AI Monday,’” Vaughan said, with his mandate for staff that they could work only 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 else at IgniteTech. “That culture needed to be built. That was the key.”

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[–] 212 points 10 months ago (7 children)

“They ruthlessly cut costs, R&D, and employee benefits and then replace existing employees with overseas contractors. Innovation and growth take a back seat to sheer profitability.”

This is the operating manual that explains why IgniteTech’s much-publicized AI purge feels more like a familiar private-equity play.
[...]
IgniteTech is owned by ESW. For anyone who’s watched the ESW orbit, that vagueness is not accidental. ESW’s playbook, summarized in a long explanatory dossier that has circulated inside the industry, is blunt: buy distressed software, strip costs, move work to an hourly contractor model through a unit like Crossover (which has been described in Forbes as a “global software sweatshop”), and squeeze recurring revenue out of an existing customer base rather than invest in new products.

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  • [–] 50 points 10 months ago (4 children)

    Very interesting. I appreciate the additional information. Saying its for AI but moving it to overseas contractors instead of actually moving it to AI that is actually overseas contractors (like that one AI company that was outed as being 700 Indian developers) is honestly kinda funny. AI is enshittification given form, I suppose.

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  • [–] 16 points 10 months ago

    I mean they have added a chatbot to their website and I'm sure they have replaced overseas first line support in many products with chatbots as well to encourage their customers to give up on getting support (and ensure that the customers that prevails and get sent to a human coworker are sufficiently pissed off).

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  • [–] 5 points 10 months ago*

    The AI part is that the drug riddled CEO asked AI leading questions. The AI wholeheartedly agreed the company should speed run late stage capitalism. What more confirmation is needed that AI is the future?

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  • [–] 105 points 10 months ago (14 children)

    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.

    So the people that had an actual idea of what the implications of using it might be weren't on board? Huh. Weird.

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  • [–] 57 points 10 months ago (8 children)

    "All the engineers said my "screen door on a submarine" was "stupid" and would "sink the ship", so I fired them and hired new engineers!"

    • CEO of now defunct "Screen Door Subs Inc."
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  • [–] 14 points 10 months ago* (last edited 10 months ago) (5 children)

    I told AI to build me a submarine out of titanium carbon fiber.

    • Stockton Rush (if he were alive today)
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  • [–] 11 points 10 months ago (4 children)

    Titanic sub was made from carbon fiber. Titanium is what he should have used.

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  • [–] 8 points 10 months ago (3 children)

    Damnit, I knew that too. I stopped skimming too early in the Wiki paragraph.

    The entire pressure vessel for the crew used five major components: two hemispherical titanium end caps, two matching titanium interface rings, and the 142 cm (56 in) internal diameter, 2.4-meter-long (7.9 ft) carbon fiber-wound cylindrical hull.[15] The forward hemispherical end cap could be detached from its interface ring, becoming a hatch that allowed crew members to enter the crew compartment before a mission, and exit at its conclusion.[3]

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  • [–] 26 points 10 months ago* (1 child)

    speaking of submarines, this is the exact line of thinking that turned an idiot CEO into a paste at the bottom of the ocean

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  • [–] 18 points 10 months ago (2 children)

    Like the guy with the carbon fiber submarine. Every engineer told him it couldn't be done, so he kept firing them until he had a staff of young, inexperienced engineers who would do what they were told, and just collect their paychecks.

    Now their boss is dead, and there are no more paychecks.

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  • [–] 11 points 10 months ago

    Seeing these kinds of people harness AI is so embarrassing. They feel empowered while doing some of the whackest stuff. In the end, it is still technical style work snd they are still awful at it.

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  • [–] 73 points 10 months ago (3 children)

    Because it had nothing to do with AI

    It was an excuse to slash the workforce with relatively little backlash.

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  • [–] 11 points 10 months ago (2 children)

    and that's how he achieved 75% profit margin. Let's see him do that twice.

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  • [–] 66 points 10 months ago (7 children)

    Did AI build that dogshit website of theirs too?

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  • [–] 1 point 10 months ago (3 children)
  • [–] 1 point 10 months ago (2 children)

    looks best without a browser at all.

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  • [–] 61 points 10 months ago* (1 child)

    Nota bene: Not just laid off, replaced. With other people.

    Basically spent a ton of money and talent and business disruption to turn over 80% of his workforce for shits and gigs.

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  • [–] 50 points 10 months ago (1 child)
  • [–] 41 points 10 months ago (4 children)
  • [–] 40 points 10 months ago (3 children)

    The question I put to management is "What do you want me to use AI for?"

    I can't get a consistent answer. Lots of stuff unrelated to my job duties. "Well, it's so easy to make Facebook ads!" - "You know that's not a thing I do, right?"

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  • [–] 15 points 10 months ago

    They don't have an answer because they don't know either. They've bought into the idea, and invested trillions, and now they're all hoping to just churn the cream until it turns into something else, but they have no idea what it will be, or how to use it.

    They're just hoping some minion finally figures out a profitable model, so they can claim it as their own, give him a nominal raise and a nice office, and they can go make trillions off his idea.

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  • [+] 77 points 10 months ago (1 child)
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    [–] 36 points 10 months ago (2 children)

    A company so small it doesn't even have a Wikipedia page. No discernible products.

    Any poly market bets on how long this company actually lasts?

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  • [–] 12 points 10 months ago

    Their website barely even works it honestly looks like a scam organisation. I can't find any description of what it is that they actually do which makes me believe that they don't do anything.

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  • [–] 36 points 10 months ago (2 children)

    If this dickhead is so smart, why does he even need a staff? I’m sure he can go start a company all by himself with just AI to work for him.

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  • [–] 35 points 10 months ago*

    He REALLY hates paying employees and wants their pennies in his treasure horde, we get it.

    He will be shocked when he discovers the shareholders don't want to pay him, either. He'll be like "what?!?! AI doing MY job? This is a travesty!" and then they will have robot security drag him out of the building screaming.

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  • [–] 34 points 10 months ago (3 children)

    What the fuck is IgniteTech?

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  • [–] 32 points 10 months ago* (1 child)

    An "enterprise-software powerhouse", allegedly. Basically they bought an AI startup and decided that this was their entire personality now.

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  • [–] 5 points 10 months ago

    Yeah looking it over it looks like they're a tech accusation company. Basically they buy flailing or nearly failed companies suck anything out of them they can and then sell them. They probably purchased an AI company like you're saying decided to go all in on it while purchasing and selling other companies as well. Having anything AI related right now bring big bucks when it comes to funding.

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  • [–] 31 points 10 months ago (1 child)

    This is a paid promotion. Its one of the ones you pay an extra $1000 and they hide the sponsored tag.

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  • [–] 24 points 10 months ago (2 children)

    This reads like a very weird AI circlejerk. They repeatedly mention that AI is the solution every company should adopt, but fail to provide a single example of succesful application. And I mean a how not a reult. They say 'company X KPI are this % better thanks to AI', but not how they applied it. Just talk of AI mindset, and 'culture' but I would have liked to understand what exactly it was used for (like agents, chatbots, automation of something in particular). It just reads like a lot of patting in the back and hot air so far, which is a pity because I would be interested in reading about real life cases of successful AI implementaiom

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  • [–] 11 points 10 months ago

    I used to joke that the CEO of my former employer must subscribe to some magazine called "CEO Weekly" in which they must periodically mention, in a similar "no examples of usage, just KPIs" manner, webchat. She would always forget about it promptly and then random number of weeks later bug my boss again.

    I told him if they want me to come up with how they can use webchat and be their solutions designer they need to double my salary. $60k USD was not enough for being a tier 3 systems admin, a fax and telephony specialist, and figuring out their use cases for them just to check a box that says "we have it!"

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  • [–] 6 points 10 months ago

    They say 'company X KPI are this % better thanks to AI'

    They asked an LLM for the KPIs and it helpfully made up the figures they wanted to see.

    Which became a self fulfilling prophecy once they showed those awesome “results” to the investors.

    Of course it'll all come crashing down once the investors ask for a return on their investment and there are no more new investors to support the pyramid, but by that point someone (probably not the brainrotten CEOs, who are drinking their own coolaid) will be far away with the money in a Cayman Islands bank account...

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  • [–] 23 points 10 months ago

    "I am bad at managing my finances, and eventually need to get bailed out by the government, or end up next to the homeless guy I used to make fun of".

    • This guy.
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  • [–] 18 points 10 months ago

    “That culture needed to be built. That was the key.”

    "Like, I'm not gonna be able to replace these losers if they don't fix this piece of shit tech for me, will I?"

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  • [–] 48 points 10 months ago (-1 children)

    Probably overhired just after COVID like everyone else in the tech sector and then realized he had no idea what to do with all the extra people because he never really had a plan.

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  • [+] 19 points 10 months ago
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  • [–] 9 points 10 months ago (-1 children)

    Eh I've only been in the software industry for 6 years and change. The post-covid hiring boom was for me the first time I'd seen it done en masse and then the subsequent layoffs were the first time I'd seen that en masse, but neither affected me personally luckily.

    I have no idea what was going on before that because I had no real reason to care, nobody wanted to hire me anyway before I got my first job in the industry lol

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    [–] 16 points 10 months ago (3 children)

    I wonder how many employees are working on automating the CEO there first

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  • [–] 13 points 10 months ago (1 child)

    From the article:

    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.

    Not surprising the people with technical skills that aren’t actually replaceable by LLMs would be against forced AI adoption. Good luck maintaining a code base created with vibe coding. Meanwhile the CEO probably looks at ChatGPT and realizes it could basically do everything he already does (write emails and make high level decisions without actually having to worry about their implementation) and then incorrectly thinks it’s the case for everyone else.

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  • [–] 8 points 10 months ago

    Prediction markets have outperformed CEOs for decades and still haven't replaced them, for the same reason WfH hasn't replaced offices. Everything is a monopoly or oligopoly now, with no need to efficiently maximize profits. It's entirely a matter of control.

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  • [–] 15 points 10 months ago

    that writer's name is all you need to know. always look at the writer's name and their previous work to identify industry shills

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  • [–] 14 points 10 months ago (2 children)

    Previously I added to my routine, to ask two stupid queries of ai every day, because that was the metric we were judged on. I can get that out of the way quickly, and get to my work.

    Now we have to use a new ai tool that has a lot more telemetry, thanks Microsoft. Unfortunately I don’t know what metric they are using and the tool spies on everything. I can’t even just not use the ai features because the tool is horrible

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  • [–] 10 points 10 months ago

    The basic stats I can see are the prompt count, number of active days, and last active date. By default reports are anonymised but that can be turned off by the admin.

    Iirc paid licenses let you do data purview searches on prompts. But I can't see that in my one as we only use the basic.

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  • [–] 3 points 10 months ago

    Use it as a dumb worklog sometimes. Tell it what you were already gonna do and ask if it would do the same. It's almost always gonna agree. Then just ignore it. If somebody AI obsessed pulls out the full logs they're gonna see you're doing what the AI said was good. (basically Inception, lol)

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  • [–] 14 points 10 months ago (4 children)

    When all of this is over, if this ever ends, I want psychologists to study this AI obsession CEOs have now. I want to see how they can look at AI and insist that everyone be forced to use something that hinders them rather than help.

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  • [–] 4 points 10 months ago
    1. Board/shareholders want company to do AI because everyone is doing AI so you can't possibly be maxing shareholder value without doing enough AI

    2. CEO has to be able to show metrics about everyone doing AI

    3. ????

    4. Not profit, that's for sure, everyone downstream from the CEO suffers, long term profitability is hindered, but at least while the bubble is still ongoing, share prices are temporarily higher because AI

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  • [–] 4 points 10 months ago

    I heard someone mention that AI sycophathy is a result of renforcement learning techniques used (people rated honeyed words higher, no shock really).

    People with big egos tend to like sycophants because they reenforce their narratives they have about themselves. Big egos also tend to take up the majority of cheif type roles, either because privlidge gives advantages to both and some because a big ego makes risks seem smaller them.

    Its like we made the perfect machine to suck money from them. The sleezyst sales person with no ego. Just endless text telling you what you want to belive.

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  • [–] 13 points 10 months ago*

    It is never the technology at fault. When it comes down to it, evil people want to exercise the power of their crown, damned be the consequences and injustice.

    AI is just the latest excuse to be a remorseless dickhead.

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  • [–] 13 points 10 months ago (1 child)

    He can have AI replace him too.

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  • [+] 12 points 10 months ago* (last edited 9 months ago) (1 child)
  • [–] 19 points 10 months ago

    Incredibly punchable face

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  • [–] 9 points 10 months ago

    so they had to sell to ai customers? what an idiot

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  • [–] 9 points 10 months ago

    May a large object fall on him. Death is the only solution to these people.

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  • [–] 7 points 10 months ago

    If this guy is such a genius why doesn't he tell us what exactly AI is for and whether it is beneficial to society at large?

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  • [–] 5 points 10 months ago

    So business grinds to a halt? That's crazy.

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  • [–] 2 points 10 months ago

    it seems its your mind that cant change

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  • [–] 2 points 10 months ago

    I hope his schmeckel no longer works.

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  • [–] 1 point 10 months ago

    Claims Adjuster.

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