Scale AI, a San Francisco-based artificial intelligence data labeling company, announced layoffs affecting approximately 14% of its global workforce, equating to around 200 full-time employees, and the termination of contracts with 500 contractors. This restructuring follows Meta's recent $14.3 billion investment in Scale AI and the appointment of co-founder Alexandr Wang as CEO. Interim CEO Jason Droege attributed the workforce reduction to shifts in market demand and acknowledged that the company had expanded its generative AI capacity too rapidly. The layoffs primarily impact the data labeling segment of the business, which Scale AI plans to narrow to higher-margin niches. Despite the cuts, the company maintains a revenue target of $2 billion for 2025. The decision comes shortly after Scale AI’s strategic realignment following the Meta investment, which acquired a 49% stake and integrated Wang into its 'superintelligence' group as Chief AI Officer.