Scale AI lays off 200 employees amid strategic pivot and CEO exit to Meta

The layoffs follow major changes at Scale AI, including Meta’s $14.3 billion investment for a 49% stake and the departure of former CEO Alexandr Wang, who now leads Meta’s new Superintelligence Lab for advanced AI research

Artificial intelligence firm Scale AI has announced the layoff of approximately 200 employees, representing around 14% of its workforce, as it recalibrates operations in response to rapid advancements in generative AI. The move was confirmed by interim CEO Jason Droege, who pointed to accelerated progress in the company’s AI capabilities over the past year as a key factor behind the restructuring.

The workforce reduction follows significant changes at the company, including a major investment deal with Meta, which acquired a 49% stake in Scale AI for $14.3 billion. Former CEO Alexandr Wang recently stepped down to lead Meta’s newly formed Superintelligence Lab, focused on pushing the boundaries of advanced AI research.

Droege acknowledged that the company’s evolving strategy had led to internal inefficiencies and overlapping roles, but assured staff that resources and capital remain strong. He emphasized a renewed focus on building customer-facing applications as the company’s next growth frontier.

“We see the future in applications—where we can provide the most value to our expanding global client base,” Droege stated in a recent blog post dated June 18.

Despite the leadership transition and layoffs, Scale AI reiterated its commitment to remaining model-agnostic and continuing collaborations with governments and enterprises worldwide.