Scale AI lays off 14% of staff, largely in data-labeling business

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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…



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