CEO axes 64% of staff for AI because it ‘does a better job’ - and says firm is now worth £5m
A Manchester tech boss says replacing nine of his 14 employees with AI has saved more than £100,000 a year as experts warn junior jobs could be among those most exposed.
A tech boss says he has replaced almost two-thirds of his staff with AI because it could do a “better job” - as fears grow over the impact of the technology on UK workers.
Rob Illidge made nine of his 14 employees redundant after deciding artificial intelligence could take over work across marketing, sales and development at his Manchester-based LinkedIn software business Vulse.
The 40-year-old claims the move is saving more than £100,000 a year and says the company’s valuation has jumped from £750,000 in 2023 to around £5 million.
“The business wouldn’t be where it is today without AI,” he said.
Nine jobs replaced by AI
Rob founded Vulse, which helps businesses encourage employees to post on LinkedIn, in 2019.
After securing venture capital funding, he rapidly expanded the workforce from five to 14 people.
But as AI tools became more powerful, he changed course.
Starting in 2023, nine jobs were eventually cut, leaving a five-person team heavily reliant on artificial intelligence.
“We were looking at repetitive tasks, so graduate jobs were more likely to go,” Rob said.
“There’s a lot of pressure on businesses and staff costs are one of them. The money was better spent elsewhere.
“AI could do a better job.”
He claims AI now allows each remaining employee to produce two to three times as much work, with automated tools continuing to operate overnight.
Vulse spends around £140 a month on AI tools, Rob said, while staffing all the roles they have replaced would cost around £250,000 a year at previous salary levels.
Experts warn junior jobs could be vulnerable
His experience comes amid growing concern about what rapidly improving AI could mean for the jobs market.
Research by the CIPD found 17% of employers expected AI to reduce their workforce, with clerical, administrative and junior professional roles among those considered most vulnerable.
The International Labour Organization has estimated that around one in four jobs worldwide has some exposure to generative AI, although it says changing jobs is currently more likely than completely replacing them.
Graduate and entry-level opportunities are a particular concern because many involve the routine tasks AI is increasingly capable of performing.
The Government acknowledged the threat in Wednesday’s Budget, saying AI presented risks to jobs as well as major opportunities for economic growth.
Chancellor John Healey announced a £700 million AI package and has said Britain needs an approach that embraces the technology without leaving workers behind.
‘We’re winning because of AI’
Rob says Vulse’s monthly recurring revenue has risen 76% year-on-year and revenue per employee has increased dramatically.
“We’re a small business fighting against giant enterprises, but we’re winning because of AI,” he said.
“We win against traditional businesses with lots of employees because we don’t have the overheads.”
Despite cutting the majority of his own workforce, he believes new types of jobs will emerge.
“New roles are being created as a result of AI,” he said. “Those are the jobs that are going to be available.”