The data labeling startup Scale AI has announced the layoff of 200 employees, representing 14% of its global workforce, and the termination of contracts with 500 global contractors. Notably, this decision comes just a month after Meta invested $14.3 billion in Scale AI and recruited its CEO. Scale AI emphasized that this restructuring is aimed at streamlining its data business, accelerating company growth, and reallocating resources to hire additional staff in other strategic areas.