Scale AI, a leading AI data labeling company, announced layoffs affecting 14% of its workforce (around 200 employees) and 500 contractors. This restructuring, following Meta's recent multi-billion dollar investment and acquisition of key personnel, aims to streamline operations and focus on its generative AI business. CEO Jason Droege cited over-expansion and shifting market demands as reasons. Despite the layoffs, Scale AI plans to increase hiring in other sectors in the latter half of 2025.

Prepared by Christopher Adams and reviewed by editorial team.