Data-labeling startup Scale AI is laying off 200 employees, roughly 14% of its staff, and cutting ties with 500 of its global contractors, Bloomberg reported on Wednesday. The cuts come just a month after Meta hired Scale AI’s CEO in a $14.3 billion deal.
In a memo obtained by Bloomberg, interim CEO Jason Droege told staff that Scale AI had too quickly scaled its core data-labeling business — in which the startup supplied AI labs with labeled, structured data to train AI models. Droege said in the memo that Scale AI would staff up around its enterprise and government sales units.
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