The CEO of a technology company has fired roughly 80% of the workforce after employees refused to adopt artificial intelligence tools the executive required. The mass layoff, which the CEO described as necessary to push the company into an AI-first future, has left the firm with a skeleton team of around 20% of its original headcount.
The Ultimatum and the Layoffs
According to internal communications reviewed by GFdaily, the CEO told staff earlier this month that they had to begin using the company's new AI system for core tasks or face termination. The deadline passed, and most employees did not comply. Within days, the CEO made good on the threat, letting go the majority of the company's engineers, sales representatives, and support personnel.
No official statement has been released by the company, and the CEO has not granted interviews. Former employees who spoke on condition of anonymity said they were given no warning beyond the initial ultimatum. One ex-staffer described the atmosphere as tense for weeks, with many workers believing the AI tool wasn't ready for production.
Why Employees Balked
The AI system in question was designed to automate customer service responses, code generation, and data analysis. Workers told colleagues that the tool frequently produced errors and required heavy manual correction. Some argued that using it would actually slow down their workflows rather than speed them up.
Others raised concerns about job security. Even before the ultimatum, the CEO had publicly discussed using AI to reduce headcount. A leaked internal memo from earlier this year suggested the executive saw automation as a way to cut operating costs by 40%. Employees who refused to adopt the AI said they were not anti-technology but opposed being forced to train the system that could replace them.
What Happens Next
The company now operates with a fraction of its former staff. The CEO has not said whether the AI tool has improved since the layoffs or if plans exist to hire workers who are willing to use it. With 80% of employees gone, the firm's ability to serve existing customers is unclear. Several clients have reportedly asked for contract cancellations in recent days.
A former manager who was let go said: “They kept a few people who agreed to use the AI. I don't know how they'll keep the lights on with that team.” The CEO has not responded to requests for comment.
The question now is whether the remaining 20% can sustain operations long enough for the AI to become reliable — or whether the company will simply shrink to nothing.
