Scale AI to cut 14% of workforce after Meta investment, Bloomberg says

Scale AI is laying off hundreds of employees from its data-labeling business, one month after Meta Platforms (META) invested $14.3B in the startup and hired away its chief executive officer, Bloomberg’s Rachel Metz and Shirin Ghaffary report. The company cut 200 full-time employees, about 14% of its global workforce, and will provide severance, Scale spokesperson Joe Osborne said Wednesday. Scale will also stop working with 500 of its thousands of global contractors, he said. The move is aimed at “streamlining our data business to help us move faster,” Osborne said, adding that Scale plans to staff up in other areas including enterprise and government sales.