ScaleAI the Buzzy Startup with over $600 million in funding just cut 20% of its employees
No longer a $7 Billion growth startup.
The Silicon Valley narrative is sometimes merely a distraction. Technology companies keep having to cut massive amounts of their employees to become more efficient as margin and earnings compression is coming in 2023.
The news for Salesforce and ScaleAI is not good. There’s controversy at these companies when you dig a bit deeper.
Even at peak “Generative AI” hype, the reality for growth startups is somewhat different. Even for a massively wealthy startup like ScaleAI.
Scale AI is a flashy startup who have $602 million in funding, that didn't protect the 20% of the recent layoffs.
According to Insider, Insiders say employees found out when they were locked out of their computers. I realize the young CEO of this company thinks he's hot stuff, even promoting his thought leadership, but this is not how you treat people.
Even in the heart of Generative A.I., hype the top companies are laying off 20% or more of their workers, what does that tell you about the real climate in 2023?
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