ECONOMIC NEWS- Scale Artificial Intelligence(AI), a leading data platform company is undergoing significant restructuring efforts, resulting in the layoff of approximately 200 full-time employees, representing 14% of its workforce.
The company will also be ending contracts with 500 freelancers globally.This move comes just a month after Meta’s $14.3 billion investment in Scale AI, giving Meta a 49% stake in the company.
According to Scale AI’s interim CEO, Jason Droege, the layoffs are a result of the company’s rapid expansion into generative AI, which led to growing too quickly and losing major clients.
Moving forward, Scale AI aims to streamline its data business to increase efficiency and deliver better data solutions to its Gen AI customers. Despite the layoffs, Scale AI remains well-funded and plans to leverage its resources to drive growth.
Notably, OpenAI and Google have reportedly cut ties with Scale AI following the Meta deal. Additionally, Scale AI’s founder, Alexandra Wang, has left the company to lead Meta’s new super intelligence labs aligning with Meta’s strategy to attract top AI talent.
In addition the tech industry has seen a surge in job cuts this year with 81 companies cutting 22,692 jobs globally, citing cost-cutting measures, strategic pivots, and AI shifts as reasons. As the industry continues to evolve, companies like Scale AI are adapting to stay competitive in the rapidly changing landscape.
photograph: supplied
