Just three weeks after acquiring developer tools company Windsurf, AI startup Cognition Labs has made a controversial move by offering voluntary buyouts to approximately 200 employees inherited from the acquisition. The buyout package, which includes a generous nine months of salary, comes as a stark acknowledgment of a cultural mismatch between the two entities, according to a report by TechCrunch.
In addition to the buyouts, Cognition has laid off 30 employees from the Windsurf team. For those who choose to stay, the company has set stringent expectations, demanding a commitment to 80-hour work weeks and a six-day office schedule, signaling a no-compromise stance on work-life balance.
An internal email from Cognition’s CEO, Scott Wu, reportedly stated that the company does not believe in traditional work-life balance, emphasizing an intense work culture. This has sparked significant backlash and raised questions about the integration process following the high-profile acquisition.
The acquisition of Windsurf, valued at around $250 million, was initially seen as a strategic move to bolster Cognition’s position in the AI sector. However, the rapid shift in employee policies and the immediate layoffs suggest deeper integration challenges and a potential clash of corporate values.
Employees now face a tough decision: accept the buyout and move on, or adapt to Cognition’s grueling work environment. This situation highlights broader trends in the AI industry, where lean teams and high-pressure environments are often prioritized over employee well-being during mergers and acquisitions.
As the tech community watches closely, Cognition’s next steps will likely set a precedent for how AI startups handle acquisitions and cultural alignment. The outcome could influence employee morale and the company’s reputation in an increasingly competitive market.
Andrew Lee
