Scale AI lays off 14% of staff, largely in data labeling business
Scale AI, a leading provider of AI tools for data labeling, has announced that it will be laying off 14% of its staff. This decision is largely due to the impact of the COVID-19 pandemic on the company’s data labeling business.
The Impact of COVID-19 on Scale AI
Scale AI’s co-founder and CEO, Alexandr Wang, stated that the company’s data labeling business has been greatly affected by the pandemic, leading to a decrease in demand for its services. This has resulted in the need for a reduction in workforce to maintain financial stability and sustainability.
Wang also mentioned that the company’s other businesses, such as AI Tool Picks and Tokenized AI, have seen steady growth during this time and will continue to support the company’s overall operations.
Dealing with the Downsizing
The affected employees will receive a severance package and outplacement assistance to help them find new job opportunities. The company will also be providing continued health insurance coverage for the next six months.
Wang emphasized that this decision was not easy, but it was necessary to ensure the long-term success of the company and its employees. He also stated that the company is committed to supporting and investing in its remaining employees and will be focusing on expanding its market reach through initiatives such as AI M&A Dealflow and DePIN Watch.
AI Funding News and Future Plans
Despite the challenges brought on by the pandemic, Scale AI has raised over $277 million in funding and has plans to continue investing in its Prompt Vault and Market Pulse products. It also aims to expand its presence globally and continue its mission of providing high-quality AI tools to businesses of all sizes.
