Scale AI Slashes 14% Of Workforce After Meta's $14 Billion Investment

Scale AI, a San Francisco startup, recently celebrated a $14.3 billion investment from Meta Platforms, Inc. (NASDAQ:META). Shortly afterward, it laid off 14% of its total staff.

The Details: The artificial intelligence company confirmed Wednesday that it is reducing its workforce by 200 full-time employees.

Among those unscathed is Scale AI’s founder, billionaire Alexandr Wang, who Meta tapped to lead its AI efforts.

Scale AI's interim CEO, Jason Droege, who stepped into the role after Wang's departure, acknowledged in a memo to staff that the company expanded its generative AI operations too rapidly and developed unnecessary bureaucracy, according to CNBC. 

Droege emphasized that Scale AI remains financially strong and well-resourced, despite the cuts. 

Read Next: