Scale AI cuts 14% of staff after joining Meta
A month after signing a record $14.3 billion acquisition deal, Scale AI is laying off hundreds of employees. Even the CEO has been shown the door.
A month after signing a record $14.3 billion acquisition deal, Scale AI is laying off hundreds of employees. Even the CEO has been shown the door.
As Bloomberg reports , citing Scale AI spokesman Joe Osborne, the layoffs will affect 200 employees of the AI company, which is 14% of Scale AI's total staff.
Osborne said the move is aimed at streamlining the data-mining business so the company can move faster. In a memo sent to Scale employees on Wednesday, interim CEO Jason Drose said the layoffs were the result of the data-mining department hiring too many people too quickly over the past year. Drose said the department’s expansion had led to excessive bureaucracy.
Drowse said the company plans to expand staff in other areas, including corporate and government sales, and will focus the data labeling department on more profitable tasks.
Meta acquired Scale AI in early June for a record $14.3 billion. In response, OpenAI said it would seek other providers of specialized data to develop more advanced AI models. Meta’s acquisition of Scale AI has added fuel to the ongoing battle between Mark Zuckerberg and Sam Altman for dominance in the artificial intelligence market.
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