One month after Meta invested $14.3 billion in Scale AI and recruited its high-profile CEO, Alexandr Wang, to lead a new superintelligence division, the data infrastructure startup has laid off 14% of its full-time workforce and ended contracts with 500 external workers.
The restructuring, announced in an internal memo obtained by multiple outlets, affects approximately 200 full-time employees and comes amid growing concerns over client retention, leadership churn, and strategic confusion within Scale’s generative AI division, a unit that until recently powered projects for clients including xAI, Google, and OpenAI.
"These changes will make us more nimble enabling us to react more quickly to shifts in the market and customer needs," interim CEO Jason Droege wrote in a company-wide
Why Scale AI Laid Off Its GenAI Team After Meta’s $14B Investment
- By Anshika Mathews
- Published on
If this was the team entrusted with Scale’s most ambitious AI initiatives, why were they the first to be cut just weeks after a record-setting investment?
