Scale AI lays off 200 employees: ‘We ramped up our GenAI capacity too quickly’ | The Verge
Meta acquired nearly half of Scale AI.
theverge.com
Scale AI is axing about 14% of its staff—roughly 200 full-timers and 500 contractors—as part of a broad shake-out just a month after Meta plunked down $14.3 billion for a 49% stake and poached top talent. CEO Jason Droege admits the company “ramped up our GenAI capacity too quickly,” spawning layers of bureaucracy and confusion. The layoffs are intended to streamline Scale’s core data-labeling biz, which powers AI training for everyone from Google to OpenAI.
In a memo to employees, Droege said Scale will ditch its 16 GenAI “pods” in favor of five high-impact teams (code, languages, experts, experimental and audio) and merge its go-to-market folks into a single “demand generation” squad. While some projects will be deprioritized, he insists Scale remains well-funded and plans to hire heavily later this year in enterprise and public-sector verticals.
Top comments (0)