This story was updated on October 21, 2026 to include the number of people who are losing their job and an interview with one of them.
A Colchester-based software company is laying off 66 employees months after announcing plans to expand its use of artificial intelligence.
Vermont Information Processing, which had employed about 600 people in the state, announced the cuts to staff in a series of company meetings Tuesday but did not detail the number of employees it cut. It also informed the state of the layoffs, as required by state law. The state Department of Labor updated its database Wednesday morning, revealing the number of people whose jobs are being trimmed.
The move appears to be a real-world example of the potential job losses that the rapid expansion of AI portends for segments of the workforce.
Founded in 1972, VIP helps beverage distributors such as breweries, wineries and soda bottlers improve sales and tracking data. Just last year, private equity firm Warburg Pincus purchased the company in what Reuters reported was a $1 billion deal. That led to windfall checks for workers enrolled in an employee stock-ownership plan. Some learned they would get as much as $10 million.
This year, the company has leaned into AI technology, including by holding an “AI Week” in April that showed it was “investing in its workforce to upskill in AI.” The initiative was intended to help employees “gain skills in AI software and prompting” to solve complex business problems. The company offered awards and cash prizes as incentives.
The embrace of AI continued after that, according to an employee who participated in one of the mandatory sessions Tuesday.
“There’s been a big push company-wide in the last couple months to at all times try to teach different AI tools how to do your job,” the employee said.
Last month, VIP acquired Encompass Technologies, an AI-focused beverage industry software firm headquartered in Fort Collins, Colo. VIP promoted the sale as a way for it to “accelerate AI innovation across the food & beverage industry.”
The employee said the meeting they attended included a presentation by CEO Andrew Criezis that was devoid of specifics such as how many people are losing their jobs. Criezis referred to making the company more efficient and “product oriented,” said the employee, who asked not to be identified.
“They kind of made it seem like there were too many cooks in the kitchen and they wanted a streamlined approach where AI was front and center,” the employee recalled.
Another employee who also requested anonymity said she got an email Monday afternoon saying she needed to attend a virtual meeting at 10 a.m. Tuesday. In it, she and others learned they were being laid off immediately but would remain fully paid employees with access to health benefits through December, she said. She expected to learn details about any additional severance pay later this month.
The meeting lasted just about 10 minutes, she said, and when she tried to log on to her computer minutes later, she realized her access credentials had been revoked.
She would have liked to have been able to finish projects she had been working on and say goodbye to co-workers. Being unable to do so felt dehumanizing, she said.
“They kind of just shut me out, and now I feel like a criminal,” she said.
The company sent Seven Days a statement late Tuesday afternoon that shed little light on its actions. It reads:
VIP is transitioning to a Product-Led Organization, the purpose of this new organizational model is to create clear ownership of products, strengthen accountability, and enable the company to focus resources and investments that are the highest priority across all of VIP and its customers. Following a review of our organizational structure and business priorities to support this product-led transition, VIP made the difficult decision to reduce the size of certain teams. We are grateful for the contributions of our impacted colleagues and are supporting them through this 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. VIP remains focused on investing in its people, products and technology to support continued innovation and deliver value to our customers.
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