US EditionScale AI Lays Off 14% Staff After Meta Gains 49% Stake
SAN FRANCISCO COUNTY, CALIFORNIA, JUL 16 – Scale AI cut 14% of staff and 500 contractors after Meta's $14.3 billion investment, shifting focus to public sector and enterprise markets amid operational streamlining.
- On July 16, 2025, Scale AI announced layoffs of 200 employees, about 14% of its 1,400-person workforce, and ended contracts with 500 global contractors.
- The layoffs followed Meta's $14.3 billion investment that made it a 49% owner and resulted in Meta hiring Scale AI's founder as CEO last month.
- Interim CEO Jason Droege stated in a Wednesday memo that Scale AI had scaled its generative AI capacity too quickly, causing inefficiencies, and will now refocus on enterprise and government sales.
- Droege stated that the reorganization will improve the company's agility and responsiveness, emphasizing that Scale AI remains well-funded. Meanwhile, spokesperson Joe Osborne confirmed that severance packages were offered to affected employees and addressed misleading reports about the company.
- The restructuring suggests Scale AI aims to streamline operations and pivot to more profitable opportunities amid customer losses, including Google cutting ties after Meta's involvement.
27 Articles
27 Articles
Scale AI lays off 200 staff, cuts 500 contractors after $14.3B Meta deal and CEO departure - Tech Startups
Just one month after Meta invested $14.3 billion in the startup and hired away its founder and CEO, Alexandr Wang, Scale AI is laying off a significant chunk of its workforce and cutting ties with hundreds of contractors. The San […] The post Scale AI lays off 200 staff, cuts 500 contractors after $14.3B Meta deal and CEO departure first appeared on Tech Startups.
SF AI startup Scale cuts 14% of staff after Meta buyout
SAN FRANCISCO (KRON) -- A San Francisco artificial intelligence startup that was recently invested in by Meta just laid off 14% of its staff, according to multiple reports. Scale AI, which received a $14.3 billion investment from the Facebook parent company last month, will be cutting 200 full-time employees and 500 contractors, according to a report in Bloomberg. The blockbuster deal that saw Meta take a majority interest in Scale AI also saw t…
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