Scale AI lays off 14% of staff, largely in data labeling business

Scale AI is laying off 200 employees (14% of staff) and cutting 500 global contractors, primarily from its data labeling business. The cuts follow Meta's $14.3 billion investment and hiring of Scale AI's CEO, forcing the company to pivot away from its core data labeling services as major customers severed ties. The company plans to focus on enterprise and government sales instead.