Scale AI, a prominent data-labeling firm for artificial intelligence, is laying off 200 full-time employees, approximately 14% of its workforce, and terminating 500 contractor roles. This decision was announced on Wednesday, just weeks after Meta invested $14.3 billion in Scale and appointed founder Alexandr Wang to lead its new AI division, Meta Superintelligence Labs.
Interim CEO Jason Droege cited rapid expansion in the generative AI sector as a factor behind the layoffs, stating that it created inefficiencies. The company will restructure its GenAI teams from 16 pods to five key areas and streamline sales and marketing into one group. Despite these cuts, Scale plans to hire hundreds in enterprise, public sector, and international markets later this year, indicating a focus on growth amid a shifting AI landscape.
