A large Vermont software company is laying off 66 employees as it leans into artificial intelligence.
Vermont Information Processing disclosed the layoffs Tuesday in a legally required notice to the Vermont Department of Labor.
The Colchester-based firm, which makes software tools for the beverage industry, is a significant private employer in Chittenden County. It grew to roughly 600 employees as an employee-owned business before being acquired last year by the private equity firm Warburg Pincus for a reported $1 billion. The company has offices outside Vermont, but its headquarters has remained in Colchester.
The layoffs were announced just over a month after Vermont Information Processing acquired another industry software company, Encompass Technologies.
Vermont Information Processing CEO Andrew Criezis emphasized the transformative potential of AI in statements about the deal.
“The food and beverage industry has an incredible opportunity to harness technology and AI to operate differently, and we want to help accelerate that transformation,” he said.
AI now features prominently on the company’s website. Its products deploy AI to “optimize delivery routes,” make orders and generate reports, the company says.
In a statement, a company spokesperson said the layoffs were made “following a review of our organizational structure and business priorities” in conjunction with a “product-led transition.”
“These changes reflect evolving business needs and a broader effort to better align our teams and resources with our customers’ needs and long-term priorities,” the statement reads.
Last year’s sale generated a financial windfall for scores of the company’s employee-owners, with payouts exceeding $1 million for many of them, Seven Days previously reported.