Tech Startup's AI Dream Goes Poof: 200 Employees Axed After Meta's CEO Heist

Photo by Andrew Winkler on Unsplash
In the blink of a Silicon Valley heartbeat, Scale AI just turned its workforce into digital tumbleweeds.
After Meta swooped in and snatched CEO Alexandr Wang faster than you can say “algorithmic disruption,” the startup is now slashing 200 full-time employees and around 500 contractors. Talk about a corporate rollercoaster that makes Six Flags look boring.
The AI Bubble Bursts
CEO Jason Droege’s internal memo reads like a tech breakup letter, admitting they “ramped up GenAI capacity too quickly” and created a bureaucratic monster that would make Kafka proud. The company is dramatically downsizing its AI business units from 16 to just 5, effectively performing corporate surgery without anesthesia.
Money Talks, Talent Walks
Despite the bloodbath, Scale AI isn’t exactly hurting for cash. Meta’s whopping $14.3 billion investment and a valuation climbing to $29 billion means they’re still swimming in venture capital dollars. But here’s the tea: Google might be ghosting them after the Meta deal, proving that in tech, today’s bestie is tomorrow’s ex.
The Silicon Valley Shuffle
Droege claims this restructuring will help “win back” customers and promises future hiring, but let’s be real - in the Bay Area tech world, today’s layoff is tomorrow’s acqui-hire. The startup game continues, with careers becoming as disposable as last season’s startup merch.
AUTHOR: rjv
SOURCE: SF Gate