one year on
Scale AI lays off 14% of staff, cuts 500 contractors after Meta deal
The data-labeling startup, now led by an interim CEO, says it expanded its generative-AI business too fast and built up too much bureaucracy.
Scale AI is laying off 200 full-time employees, roughly 14% of its workforce, and cutting ties with about 500 contractors, the company confirmed Wednesday. The cuts come just weeks after Meta invested $14.3 billion in the data-labeling startup and hired its founder, Alexandr Wang, as chief AI officer, overseeing its new organization called Meta Superintelligence Labs.
Interim CEO Jason Droege told staff in a memo that the company expanded its generative-AI data business too quickly and created too many layers of bureaucracy. He said Scale AI will instead staff up around its enterprise and government sales units. The cuts largely affect the data-labeling business.
The record
Interim CEO told employees in a memo that Scale AI ramped up gen AI capacity too quickly and created excessive bureaucracy, and that the company remains well-resourced and will hire in enterprise and government units.
Scale AI spokesperson said the company is streamlining its data business to move faster and deliver better data solutions to GenAI customers, and plans significant investments in enterprise and government AI.
One year later — open only if you can handle spoilers
Meta CEO Mark Zuckerberg hired Scale AI CEO Alexandr Wang to serve as the company's chief AI officer, overseeing its new organization called Meta Superintelligence Labs. Several of Scale AI's largest data customers cut ties with the startup after its deal with Meta. OpenAI has been winding down its work with Scale AI over the past year, and Google is reportedly cutting ties with Scale AI following the deal, according to a Reuters report.
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