Scale AI reduces its workforce by 20%

Workers who are impacted will be provided with at least eight weeks of severance pay and three months of health insurance coverage

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As reported by IANS, Scale AI, a software company based in the US, has laid off 20 per cent of its workforce. The company specialises in using both software and human labour to label data for businesses developing machine learning algorithms.

Alexandr Wang, founder and CEO, Scale AI, stated in a blogpost, “I have made the difficult decision to reduce the size of our team by 20 per cent, which means saying goodbye to many talented Scaliens.”

He also mentions how the sales of the company expanded during 2021-2022, and hence they decided to augment the number of employees expecting the significant expansion to persist. However it did not work out. “The overall situation has substantially altered in recent period, which I had not foreseen,” Wang added.

Workers who are impacted will be provided with at least eight weeks of severance pay and three months of health insurance coverage. Additionally, the company is cancelling the one-year vesting period for employees who have been with the company for less than one year, and providing aid for those on visas that need employment to remain valid.

Other changes include setting ambitious goals for cutting operating expenses for each department, revising plans for new hires, and re-assessing the necessity for any new office spaces. Wang added, “We need all staff members to be mindful of expenses and strive to be cost-effective in their spending throughout the year.”

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