AI training unicorn Snorkel AI just laid off 13% of its workforce

🎯 Impact Sentiment: Concerning

📋 Summary

• Snorkel AI, valued at $1.3 billion, cut around 13% of its staff (31 out of 240 employees), mainly as part of a strategic shift toward “data-as-a-service” and away from older business areas.
• The layoffs hit the software engineering team hardest, while most AI-focused and research roles were mostly unaffected.
• Senior staff including the global head of business development and director of AI solutions engineering were also let go.
• This follows recent significant layoffs at other data labeling firms, like Scale AI, raising concerns about stability and profitability in this sector despite massive valuations and high-profile clients.

💡 JR Insights

• 💼 Implication: The data labeling and AI training sector is feeling real pressure to streamline and focus, and even well-funded startups aren’t immune to restructuring. There’s a growing emphasis on business models that deliver more immediate value—old functions and bloated teams are on the chopping block.
• 🚨 Risk: Roles outside of direct AI specialization or core R&D are vulnerable, even for high performers or senior leaders. Professionals in this field should be cautious—relying on company valuations or VC hype doesn’t guarantee job security.
• ✨ Takeaway: If your role isn’t directly tied to current AI priorities (like foundational research or applied engineering), make sure to keep your skills sharp and your network active. The market is rewarding technical specialization, and adaptability is key if you want to avoid getting blindsided by industry shifts.