Cognition lays off Windsurf staff post-acquisition, offers buyouts
Cognition, an AI coding startup, has reportedly initiated significant workforce adjustments at Windsurf, the rival company it acquired just three weeks ago. These changes include the layoff of 30 employees last week and the offer of buyouts to approximately 200 remaining team members, according to a report by The Information.
This marks the latest in a series of turbulent events for Windsurf employees, who have navigated a tumultuous period for their company. The startup was initially on the verge of being acquired by OpenAI before losing its CEO, co-founder, and research leads to Google in a substantial $2.4 billion deal. This transaction, often termed a “reverse-acquihire,” saw Google primarily recruit key talent rather than purchasing the entire company. Windsurf was then ultimately acquired by Cognition.
At the time of the acquisition, Cognition had publicly stated that all Windsurf employees would receive financial compensation as part of the deal, emphasizing its eagerness to integrate Windsurf’s “world-class people” into its efforts to develop advanced coding tools. However, recent developments suggest that Windsurf’s intellectual property, rather than its human capital, may have been the primary driver of the acquisition.
Employees considering the buyout offer have until August 10 to accept nine months of salary. For those who opt to remain with the company, conditions reportedly include a mandatory six-day work week and expectations of over 80 hours per week. Such demanding work schedules are increasingly becoming standard practice among employees at leading AI firms.
In an email reportedly viewed by The Information, Cognition CEO Scott Wu articulated the company’s intense work philosophy: “We don’t believe in work-life balance—building the future of software engineering is a mission we all care so deeply about that we couldn’t possibly separate the two.”
TechCrunch has reached out to Cognition for further comment on these developments.