Scale AI just cut about 14% of its staff—roughly 200 full-time employees and 500 contractors—barely a month after Meta plowed in a multibillion-dollar stake. CEO Jason Droege admits they “ramped up our GenAI capacity too quickly,” spawning too much bureaucracy and overlap. To fix it, the company’s shrinking its generative-AI arm from 16 pods to five (code, languages, experts, experimental and audio) and merging sales teams into a single “demand generation” unit.
Despite the layoffs, Scale insists it’s still well-funded and plans to boost hiring later in 2025 for enterprise and public-sector projects. It’ll also deprioritize lower-growth AI gigs, betting that a leaner structure will help them pivot faster, serve existing customers better, and win back anyone who’s slowed down their data-labeling work.
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