ScaleAI that lost its CEO to Mark Zuckerberg’s Meta announces layoffs, cuts ties with some of its biggest customers; read memo to staff

ScaleAI, the artificial intelligence startup has announced significant layoffs weeks after Meta’s $14.3 billion investment and departure of CEO Alexandr Wang, who is now leading Meta’s Superintelligence Labs. The company has announced that the layoffs are part of strategic restructuring and will affect the employees of the Generative AI division. In a memo to the employees, the company has confirmed that it is laying off 200 full-time employees which accounts to 14% of its workforce. Along with this, it also has to let go of 500 global contractors. “We ramped up our GenAI capacity too quickly,” CEO Jason Droege wrote. “It created too many layers, excessive bureaucracy, and confusion about the team’s mission”.