Just one month after Meta invested $14.3 billion for a 49% stake in Scale AI, the data-labeling powerhouse has announced a major workforce reduction, cutting approximately 14% of its staff—about 200 full-time employees—along with 500 global contractors, as the company reassesses its generative AI strategy.

The announcement was confirmed by Scale spokesperson Joe Osborne, who told The Verge that the layoffs are part of a broader restructuring intended to streamline operations and reduce internal inefficiencies. The move follows a period of rapid hiring that CEO Jason Droege now says outpaced market demand.

“The reasons for these changes are straightforward: we ramped up our GenAI capacity too quickly over the past year,” Droege wrote in an internal memo viewed by reporters. “That created too many layers, excessive bureaucracy, and unhelpful confusion about the team’s mission.” Continue reading Scale AI Lays Off 200 Employees Amid Restructuring of Generative AI Division →