Right now, the interim CEO position has been taken by Jason Droege, and according to a Bloomberg report, it seems that the interim CEO announced to its employees on Wednesday that the startup is planning a round of Scale AI layoffs. The reason behind this round of Scale AI layoffs is that after the recent Meta investment, the startup’s generative AI capacity has increased, maybe too fast, creating ineffective administration processes.
“These changes will make us more nimble, enabling us to react more quickly to shifts in the market and customer needs. This structure will allow us to better serve the customers we have today and win back customers that have slowed down work with us.”, Jason Droege, the Interim CEO of Scale AI, stated in the employees' memo
Also, Droege stated that the Scale AI startup will increase the headcount during the second half of this year, especially in application-focused business units, asl well as the public sector, enterprise, and also in international public sector divisions.
When was the Scale AI startup founded?
Scale AI was founded in 2016, almost 10 years ago, and since then, it has gained popularity because it has helped different giants such as OpenAI, Google, and Microsoft to organize their data to be used in training sessions for their powerful artificial intelligence models.
But following the recent Meta deal, when the company invested about $14.3 billion in Scale AI, OpenAI has been rumored to end its agreement with the startup, as well as Google, which is planning to cut ties with Scale AI.
It should be mentioned that all the affected employees have received severance from the company. Initially, Scale AI had a global workforce of about 1,400 employees, but now, the data-labeling startup will remain with about 1,200 after the Scale AI layoffs.
Stay tuned for more updates!
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