Scale AI fires 14% employees after Meta's mega investment
17 Jul 2025, 11:49 AMThe restructuring will make Scale AI more nimble; and allow it to serve the customers better, the company's interim CEO Jason Droege wrote to employees.
Team Head&Tale
Share the story on
Scale AI is laying off 14% (close to 200 employees) of its staff after Meta invested $14.3 billion to pick 49% stake in the US-based artificial intelligence firm and hired its CEO Alexandr Wang.
Jason Droege, who became interim CEO after the departure of founder Wang, told employees in an email that the company ramped up its GenAI capacity "too quickly" over the past year and created too many layers of "excessive bureaucracy".
Droege further added that these changes will make Scale AI more nimble; and allow it to serve the customers better.
He, however, noted that Scale AI will "significantly increase headcount" across its application business units in the second half of the year, including within its enterprise, public sector and international public sector divisions, Bloomberg reported.
Prior to the layoffs, Scale AI employed 1,400 people globally.
Meta's "significant" investment in data labeling company Scale AI last month sent quite a jitter across the larger tech industry.
A string of reports soon emerged that Meta's rivals including Google, OpenAI and Elon Musk's xAI are severing ties with Scale AI. It gave the impression that the Mark Zuckerberg-led company had struck gold and with Scale AI's co-founder Alexandr Wang joining Meta's superintelligence unit a void of sorts would be left in the data labeling industry for Meta's rivals at least.
Recently, The Head and Tale looked at other data labeling startups that have also received funding over the years.
Who Reads Us
“I enjoy reading The Head and Tale for their coverage on the Fintech landscape. The reporting is incisive and honest, and it demonstrates a sharp understanding of the industry and the issues that concern it. I'd like to extend my best wishes to Arti for her continued success.”
“Well-researched, informative and analysis based reporting makes an interesting read. 'The Head and Tale' news portal has been demonstrating this quite well covering fintech and emerging tech sectors. Their timely updates, exclusive stories and different perspectives on these sectors help me stay informed. Kudos to Arti Singh for pursuing her passion and best wishes to the team.”
“The Head and Tale stands out for its deep industry knowledge and impressive network of sources. I especially appreciate that the reporting remains independent, rarely resorting to paid puff pieces, making it a publication I can genuinely trust. Having followed Arti’s work for years, I’ve come to rely on The Head and Tale for its unparalleled insight and truly independent coverage. Arti’s long-standing presence in the sector means her reporting is always informed, with access few can match.”
“What I really appreciate about The Head and Tale is that it doesn’t just report the news, it interprets it. The stories are well-researched, comprehensive, and bold. Arti brings a fearless lens to reporting, often asking the uncomfortable but necessary questions. She makes you pause, reflect, and rethink what it all means for the payments and fintech ecosystem. It’s rare to find journalism that’s this sharp, timely, and relevant to the work we do every day.”
“I’ve always valued journalism that goes beyond surface-level headlines. The Head and Tale does exactly that - it connects the dots, asks the tough questions, and brings clarity to the shifts shaping our evolving industry. I’ve even encouraged my team members to subscribe, because staying informed through credible, deeply reported stories is as important as building products. For me, The Head and Tale has become part of essential reading.”
Related News