Scale AI Lays Off Jobs Following Meta’s Investment

Scale AI, reported by Bloomberg first, announced that it is cutting 14% of its global workforce, approximately 200 full-time employees, and ending contracts with 500 global contractors, just weeks after Meta Platforms Inc. invested $14.3 billion for a 49% stake in the company.

The layoffs, primarily targeting the generative AI division, come after former CEO Alexandr Wang left to join Meta’s “Superintelligence” AI unit, with Jason Droege taking over as interim CEO.

Droege stated in a memo that the company had “ramped up our GenAI capacity too quickly,” leading to excessive bureaucracy.

Clients like OpenAI and Google have reduced work with Scale due to concerns over Meta’s access to proprietary data.

Scale plans to increase hiring in its enterprise and public sector divisions to address market shifts while maintaining its well-funded and independent status.

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