Stability AI, known for its Stable Diffusion text-to-image model, has laid off 10% of its workforce, about 20 employees, to streamline operations following unsustainable growth. This restructuring, disclosed in an internal memo, coincides with leadership changes, with Shan Shan Wong and Christian Laforte stepping in as co-CEOs after former CEO Emad Mostaque departed to explore decentralized AI.
“Those who are affected by this have been notified individually and we will be supporting them throughout this period,” Wong and Laforte stated in the internal memo, who previously held the positions of chief operating officer and chief technology officer at the company, respectively.
Mostaque left amid controversies including misrepresentations about his academic credentials and a disputed partnership with Amazon. The layoffs primarily affect the operational staff, with the company aiming to stabilize its structure as it continues to innovate and release products like the Stable Diffusion 3 AI model.
You can read the full memo from co-CEOs Wong and Christian Laforte below:
Dear team,
As you know, over the past couple of weeks the Leadership team have been working hard on a strategic plan to reduce our cost-base, strengthen support with our investors and partners, and enable our teams to continue developing and releasing innovative products.
Following a review of the global team, we have determined the need to restructure parts of the business, which will sadly mean saying goodbye to some colleagues. Those who are affected by this have been notified individually and we will be supporting them throughout this period.
These decisions have not been taken lightly and they are intended to right-size parts of the business and focus our operations, which is critical to setting us on a more sustainable path — and to put us in the best possible position to continue developing cutting-edge models and products. Products like the Stable Diffusion 3 API strengthen our deep-tech leadership and demonstrate our unique, systemic importance to the AI ecosystem.
We will meet as planned on Thursday for our regular town hall and we encourage you to ask any questions you might have of our Leadership team in the form that will be sent out shortly. In the meantime, please feel free to discuss any concerns with your manager.
We would like to thank everyone for their dedication and contributions. 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.
Best wishes,
Shan Shan & Christian
