Investing.com - Financial Markets Worldwide

Scale AI cuts 14% of staff after Meta’s $14.3 billion investment - Bloomberg

Published 16/07/2025, 20:52
© Reuters
META
3.15%

Investing.com -- Scale AI is reducing its workforce by 14%, laying off 200 full-time employees from its data-labeling business, just one month after receiving a $14.3 billion investment from Meta Platforms Inc (NASDAQ:META). and seeing its CEO depart for the social media giant.

The company will provide severance to affected employees and discontinue working with 500 of its thousands of global contractors, according to Bloomberg, citing Scale spokesperson Joe Osborne on Wednesday.

Osborne explained that the layoffs are intended to streamline the data business to increase operational speed. Despite the cuts, Scale plans to increase staffing in other areas, particularly enterprise and government sales.

In a memo sent to employees on Wednesday, interim CEO Jason Droege attributed the layoffs to rapid expansion of the data labeling business over the past year, which created "too many layers, excessive bureaucracy, and unhelpful confusion about the team’s mission."

Droege also cited "shifts in market demand" as a factor in the restructuring decision. Following the Meta deal, some of Scale’s major customers, including OpenAI and Alphabet (NASDAQ:GOOGL) Inc.’s Google, have reportedly reduced or eliminated their work with the startup.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.