Scale AI has confirmed significant layoffs amounting to 14% of its workforce, which equates to approximately 200 jobs. This decision comes in the wake of a substantial investment from Meta, amounting to around $14 billion. The company cited overhiring and recent market shifts as primary reasons for the downsizing, particularly affecting its data-labeling business. These layoffs follow a major restructuring of the company, as it seeks to recalibrate after the influx of funds and a rapid expansion in GenAI capacity that was deemed unsustainable. The interim CEO reassured remaining employees of the company’s strategic direction despite the challenging circumstances.