How Facebook parent Meta’s investment in Scale AI may be a ‘problem’ for the startup’s employees

Artificial intelligence (AI) startup, Scale AI, is cutting 200 full-time employees, which represents 14% of the company’s global workforce, a report claims. Apart from this, the company is also ending contracts with 500 contractors. This decision comes weeks after Meta invested $14.3 billion in the company and hired its founder, Alexandr Wang. Before these reductions, Scale AI had a global workforce of 1,400 people. In a statement to CNBC, Scale AI spokesperson Joe Osborne confirmed the layoffs and noted that affected employees have been provided severance packages.

“We’re streamlining our data business to help us move faster and deliver even better data solutions to our GenAI customers. We also plan to make significant investments and hiring across our enterprise and government AI businesses,” Osborne told CNBC.