Cognition Offers Staff Exit After Windsurf Acquisition

Cognition's Restructuring Following Windsurf Acquisition

Cognition, an AI coding startup, recently completed the acquisition of Windsurf three weeks prior. Subsequently, a reduction in workforce occurred last week, resulting in the layoff of 30 employees.

Furthermore, buyout offers are currently being extended to the approximately 200 remaining members of the Windsurf team, as reported by The Information.

A Period of Instability for Windsurf

These developments represent another significant shift for Windsurf employees, following a period of considerable uncertainty for the company.

Initially, a potential acquisition by OpenAI was nearly finalized. However, this was followed by the departure of key personnel – including the CEO, co-founder, and research leaders – to Google in a $2.4 billion transaction.

This deal, characterized as a reverse-acquihire, involved Google primarily hiring the talent rather than acquiring the company itself. Ultimately, Windsurf was acquired by Cognition.

Initial Promises Versus Current Reality

Upon the acquisition, Cognition communicated that all Windsurf employees would receive financial compensation as part of the agreement.

The company also expressed enthusiasm about integrating Windsurf’s “world-class people” into the development of advanced coding tools.

However, current actions suggest that Windsurf’s intellectual property was the primary asset sought in the acquisition, rather than its workforce.

Buyout Offers and Demanding Work Conditions

An internal email, reviewed by The Information, indicated that employees were given a deadline of August 10th to decide on accepting the buyout offer.

The buyout package is equivalent to nine months of salary. Those who elect to remain with the company are facing stringent requirements.

Reportedly, continued employment necessitates a six-day work week in the office, with expectations of exceeding 80 working hours – conditions increasingly common within leading AI firms.

CEO's Perspective on Work-Life Integration

Cognition CEO, Scott Wu, articulated the company’s stance in the aforementioned email.

He stated, “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 contacted Cognition seeking further clarification on these matters.

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