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Scale AI lays off 200 employees: ‘We ramped up our GenAI capacity too quickly'

Scale AI, the go-to data-annotation shop for Google, OpenAI, Anthropic and more, is slashing about 14% of its workforce—roughly 200 full-time staff and 500 contractors—just a month after Meta dropped over $14 billion for a 49% stake. CEO Jason Droege admits they “ramped up our GenAI capacity too quickly,” creating needless layers, red tape and confusion.

To right the ship, Scale’s GenAI arm will shrink from 16 pods into five core teams (code, languages, experts, experimental, audio) and fold its sales group into one “demand generation” unit. Low-growth projects get bumped to the back burner, but the company insists it’s still “well-resourced, well-funded” and plans to hire heavily in enterprise and public-sector roles later in 2025.

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