Scale AI is undergoing significant layoffs, cutting 200 full-time employees and around 500 contractors after Meta's investment and CEO poaching. CEO Jason Droege stated the decision followed a company review and restructuring of the generative AI business from 16 groups to five. He acknowledged that the company had overhired, leading to inefficiencies and confusion. While not profitable, Scale remains well-funded and intends to hire more employees in the future as it aims to win back customers.
"After completing a review of our company and its operations, it's clear we ramped up our GenAI capacity too quickly over the past year, creating inefficiencies and redundancies."
"We're restructuring our generative AI business unit by cutting it from 16 groups to five – code, language, experts, experimental, and audio."
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