“Too Many Layers”: Scale AI Slashing 14% of Staff in 2025

What’s Happening at Scale AI?

Scale AI is planning to eliminate approximately 14% of its workforce, or roughly 200 employees, just one month after Meta took a multibillion-dollar stake in the company.

“The reasons for these changes are straightforward: we ramped up our GenAI capacity too quickly over the past year,” CEO Jason Droege said in an email to staff seen by The Verge.

“We [also] created too many layers, excessive bureaucracy, and unhelpful confusion about the team’s mission. Shifts in market demand also required us to re-examine our plans and refine our approach.”

As part of the restructuring, Scale AI is also reportedly parting ways with around 500 contractors.

Impact on Canadian Staff

It remains unclear if Canadian employees at Scale AI are affected by the latest workforce reduction.

According to LinkedIn, the company has more than 150 workers in the country.

• SEE ALSO: Layoffs in Canada: Which Employers are Slashing Staff?

Next Steps for Scale AI Staff

If you’re fired or let go from Scale AI, understanding your legal rights is crucial.

Non-unionized employees in Canada’s tech industry are entitled to severance pay. This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and British Columbia (BC).

The amount you’re owed is based on a variety of factors, including your role, tenure, age, and ability to find similar work.

📺 WATCH: Everything Non-Unionized Employees Need to Know About Severance Pay

Key Severance Facts:

• Compensation: Severance packages, which can be as much as 24 months’ pay, may include salary, bonuses, commissions, and other forms of compensation. Use our firm’s free Severance Pay Calculator to better understand your entitlements.
• Deadlines: You generally have up to 2 years from the date of your termination to review and negotiate severance offers.
• Action steps: Consult an employment lawyer at Samfiru Tumarkin LLP to ensure your severance package is fair and aligns with Canadian employment laws.

Lost Your Job at Scale AI? Contact Us

If you’ve lost your job at Scale AI for any reason, the experienced employment law team at Samfiru Tumarkin LLP can help.

Our lawyers in Ontario, Alberta, and BC have helped tens of thousands of non-unionized individuals resolve their workplace issues.

Call us today at 1-855-821-5900 or request a consultation online.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and SHOULD NOT be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.