Latest news with #FTEs
Time of India
6 days ago
- Business
- Time of India
ScaleAI that lost its CEO to Mark Zuckerberg's Meta announces layoffs, cuts ties with some of its biggest customers; read memo to staff
ScaleAI, the artificial intelligence startup has announced significant layoffs weeks after Meta's $14.3 billion investment and departure of CEO Alexandr Wang, who is now leading Meta's Superintelligence Labs. The company has announced that the layoffs are part of strategic restructuring and will affect the employees of the Generative AI division . In a memo to the employees, the company has confirmed that it is laying off 200 full-time employees which accounts to 14% of its workforce. Along with this, it also has to let go of 500 global contractors. 'We ramped up our GenAI capacity too quickly,' CEO Jason Droege wrote. 'It created too many layers, excessive bureaucracy, and confusion about the team's mission'. ScaleAI layoffs: Read what CEO Jason Droege said in a memo to employees In a memo to the employees, CEO Jason Droege confirmed the layoffs. The company has revealed that the Generative AI division is reduced from 16 pods to 5. The affected employees were locked out of systems and slack channels before receiving severance details. Here is the full email from Scale AI's CEO Jason Droege to Scale AI's GenAI employees: Hi team, by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like An engineer reveals: One simple trick to get internet without a subscription Techno Mag Learn More Undo After reviewing our company and its operations, I've made the decision to restructure several parts of the GenAI organization. I believe these changes will best position us for the long-term, make the org more efficient, and allow GenAI to focus on the biggest and most profitable opportunities. As a result of this restructuring, some members of this org will be leaving Scale today. To ensure a smooth process and give people the necessary space, please do not come into the office. All impacted FTEs will receive an email to their personal email address by 8am PT and badge and IT access will be removed. For those not impacted, I will share more details later this morning on the restructuring and our path forward. I know news like this is tough, but please know how grateful I am for the work this team has done. Whether you're directly affected by these changes or not, every one of you has helped build Scale into the company it is today and the accomplishments it has made. Thank you again. Despite the layoffs the company insists it remains well-funded and plans to hire hundreds in the second half of 2025, targeting enterprise, public sector, and international markets. AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Business Insider
16-07-2025
- Business
- Business Insider
Scale AI just laid off 14% of its workforce: read the full email the interim CEO just sent employees
Scale AI just laid off approximately 200 full-time employees (14% of its 1,400-person workforce) and 500 contractors, according to the company. This comes after Meta invested $14 billion into Scale AI last month as part of a blockbuster AI deal that included the hiring of Scale's ex-CEO, Alexandr Wang, to lead its new Superintelligence group and the purchase of equity in almost half the data labeling startup. The company is 'restructuring' its GenAI group according to an email from Scale's interim CEO, Jason Droege, obtained by Business Insider. The GenAI organization is a core part of Scale that manages its work on some of the best-known AI chatbots like xAI's Grok and Google's Gemini. The move was abrupt, one source told BI, with employees shut out of systems and deactivated from Slack even before they woke up. Questions about Scale AI's long-term sustainability swirled, with some of Scale's biggest clients like Google abruptly halting projects in the wake of the deal. Scale remains well-funded and is committed to growth and hiring hundreds more employees in different sectors, the startup told BI. "As a result of this restructuring, some members of this org will be leaving Scale today," the email reads. "To ensure a smooth process and give people the necessary space, please do not come into the office." The source told BI that the Meta investment weakened Scale AI's core leadership, with not only Alexandr Wang departing but also key VPs, chiefs of staff, and researchers. Laid-off ScaleAI employees will be paid as normal through September 15, and then receive a minimum of four weeks of additional pay if they sign the company's severance agreement, per a separate email to the affected employees obtained by BI. Here is the full email from Scale AI's CEO Jason Droege: Hi team, After reviewing our company and its operations, I've made the decision to restructure several parts of the GenAI organization. I believe these changes will best position us for the long-term, make the org more efficient, and allow GenAI to focus on the biggest and most profitable opportunities. As a result of this restructuring, some members of this org will be leaving Scale today. To ensure a smooth process and give people the necessary space, please do not come into the office. All impacted FTEs will receive an email to their personal email address by 8am PT and badge and IT access will be removed. For those not impacted, I will share more details later this morning on the restructuring and our path forward. I know news like this is tough, but please know how grateful I am for the work this team has done. Whether you're directly affected by these changes or not, every one of you has helped build Scale into the company it is today and the accomplishments it has made.
CBS News
04-04-2025
- Business
- CBS News
Denver area nonprofit that feeds thousands loses millions federal funding, group says
When immigrants and asylum seekers came to Colorado from the southern border, the Village Exchange Center on the border of Denver and Aurora stepped up to help. Through funding from the federal government , they fed them, along with other Aurorans, through their food bank and offered them free vaccinations, job fairs , and integration programs. "We're providing wraparound services to get people legal assistance, into jobs, training, getting them health care, Medicaid, WIC, SNAP, any of the benefits that they should be using to become self-sustaining," said co-founder and CEO Amanda Blaurock. Now, all of that is in jeopardy. Just a few days ago, the federal grant money the center used to help run its program was terminated. "Based on us potentially providing funding to 'illegal aliens,' were the words," said Blaurock. Village Exchange lost more than $2 million and may lose $3 million more, which has hurt them. "We have had to let go of a number of contractors and then move FTEs into different roles that they weren't previously in," said Blaurock. And their weekly food pantry, which feeds 1,100 families a week, is at risk. "After June, we will be looking at either cutting our pantries significantly and our team and not being able to provide food services to the community or getting different partners that can provide in-kind support," said Blaurock. She says cutting funding doesn't get rid of need and worries that if they can't provide services to at-risk communities in Denver, Adams, and Arapahoe counties, it could have a devastating effect on all residents as people look for new ways to survive. "It really jeopardizes the integrity and health and safety of all people living here," said Blaurock. Village Exchange Center says they will be reaching out to donors and the public to try to fill the funding gap they now face.
