ScaleAI plans to lay off approximately 200 full-time employees.

Recently acquired by Meta, the data labeling company Scale AI will lay off approximately 200 full-time employees and 500 contractors. According to media reports, an email sent by interim president Jason DeGroot to employees revealed that Scale AI plans to restructure several departments within its Scale Generative AI business, combining 16 internal teams into the "most impactful five": Code, Language, Experts, Experiments, and Audio. "The reason for the change is simple, we have rapidly increased the production capacity of GenAI over the past year," DeGroot wrote. "While it felt like the right decision at the time, it has clearly resulted in inefficiencies and redundancy. We have brought in too many layers, too much bureaucracy, and confusion about team mission. The changing market demands also require us to re-examine and improve." This email was sent by interim president Jason DeGroot to Scale AI employees.