AI startup behind Stable Diffusion trims its workforce by 10%
What's the story
Stability AI, the company behind Stable Diffusion AI image generator, has confirmed significant job cuts amidst a series of internal struggles.
CNBC reports that 20 employees were laid off this week as part of an effort to streamline the business model.
This move accounts for 10% of Stability's global workforce and follows the controversial departure of former CEO Emad Mostaque last month.
Restructuring
Co-CEOs announce business restructuring following layoffs
In a communication to staff, newly appointed co-CEOs Shan Shan Wong and Christian Laforte announced the company's need to "restructure parts of the business, which will sadly mean saying goodbye to some colleagues."
This announcement comes amidst a challenging period for Stability AI.
The company is currently dealing with allegations related to Mostaque's supposed resume fabrications, peculiar behavior, and questionable business practices.
Controversies
Allegations and resignations plague Stability AI's recent past
Mostaque's leadership has been characterized by media as unpredictable and financially irresponsible.
A Bloomberg report from last year alleged that Stability AI was in debt to a vendor for $70,000 under Mostaque's tenure.
Additionally, Fortune reported that Mostaque disappeared so abruptly in December 2022 that his wife had to text employees about his whereabouts.
Prior to Mostaque's exit, three key German researchers who contributed significantly to the image generator technology also resigned from the company.
Future outlook
Co-CEOs remain hopeful despite Stability AI's challenges
Despite the company's current difficulties, Wong and Laforte remain optimistic about Stability AI's future.
In their email to employees, they acknowledged the challenges but assured that they have a plan in place.
They stated, "We recognize the challenges we face, but we have a plan in place. Through the hard work and commitment of this team, we are making progress every day, moving us steadily in the right direction."