The Right to Disconnect Bill: Could This Change India’s Work-Life Culture for Good?
December 9, 2025
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- Sun, 14 December 2025
Following Meta’s $14.3 billion investment in Scale AI, Mercor CEO Brendan Foody criticised the startup for drifting from its core strengths. While acknowledging Scale’s impressive sales and distribution reach, he argued that product quality, operational scalability, and internal systems have not kept pace with its market growth.
“In some ways, Scale lost the focus on product, on scaling quality. And that was one of the largest challenges of the business,” Foody said.
He also pointed to security lapses, such as using public Google Docs for confidential projects, as evidence that Scale AI’s rapid expansion came at the cost of discipline and long-term focus.
In response, Scale AI stressed that its performance remains strong, noting that “quality metrics are at an all-time high.” The company added that new measures have been introduced to secure sensitive data and reinforce internal practices.
At the same time, Scale has laid off 14 per cent of its workforce, around 200 employees and cut about 500 contractors, mostly from its Generative AI division.
The company admitted that the unit had expanded too quickly and developed inefficiencies with overlapping roles and too many management layers.
Security issues, including reports of confidential Google Docs being left publicly accessible, further raised concerns among clients. Despite these setbacks, Scale AI insists it is financially stable following Meta’s backing and says it will now focus on strengthening its enterprise, government, and international services while streamlining product teams.
Foody emphasised that Mercor prioritises quality and fair compensation, stating,
[Credits for header image: TransBank
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