Stability AI, an open-source generative artificial intelligence (AI) company, had decided to lay off 10 percent of its staff. This is as per an internal memo that was seen by Reuters.
Regarding the recent layoffs, interim CEOs Shan Shan Wong and Christian LaForte said that the move was a part of their strategic plan to reduce costs. As per CNBC, the two said that the layoff was a “strategic plan to reduce our cost base, strengthen support with our investors and partners, and enable teams to continue developing and releasing innovative products.”
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Wong and LaForte further told CNBC, “Those who are affected by this have been notified individually, and we will be supporting them throughout this period.” The CNBC report further says that the employees affected are mostly from the operational side.
Stability AI's layoffs follow shortly after the departure of its CEO, Emad Mostaque. Following the departure of Mostaque, the company appointed Shan Shan Wong, Chief Operating Officer, and Christian Laforte, Chief Technology Officer, as the interim co-CEOs of Stability AI.
In a show of optimism, the company said that this leadership change will help the company understand its full vision. In a blog post, the company said, “This leadership change marks an opportunity for Stability AI, the management team, the Board of Directors, and investors in a shared commitment to realize the full vision for the company’s next stage of growth.”
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Taking to X, Mostaque said, “The concentration of power in AI is bad for us all. I decided to step down to fix this at Stability and elsewhere. I will be sharing more soon.”
Interestingly, Mostaque was recently under scrutiny for his credentials. As per a Forbes report, Mostaque had gullied people about receiving a Masters degree from Oxford University. He had also allegedly described Stability’s deal with Amazon as a strategic deal, which was actually nothing more than a “cloud computing leasing contact.” Mostaque had responded to these allegations as false.
