Monday, November 17, 2025

Three weeks after buying Windsurf, Cognition affords employees the exit door

Cognition, the AI coding startup that acquired rival firm Windsurf three weeks in the past, laid off 30 staff final week and is providing buyouts to the roughly 200 remaining staff on the staff, experiences The Data.

That is the most recent bout of whiplash that Windsurf staff have confronted after a tumultuous stretch for the corporate. The startup was initially virtually acquired by OpenAI, then misplaced its CEO, co-founder, and analysis results in Google in a $2.4 billion deal referred to as a reverse-acquihire (the place Google employed the important thing expertise moderately than shopping for the corporate), earlier than in the end getting acquired by Cognition.  

On the time of the acquisition, Cognition acknowledged that 100% of Windsurf staff would obtain monetary compensation as a part of the deal and careworn that the corporate was excited to carry on Windsurf’s “world-class individuals” to develop top-notch coding instruments. 

Now, it’s turning into clear that Windsurf’s mental property, not its expertise, was the true purchase.

In accordance with an e mail The Data considered, staff got till August 10 to resolve whether or not they need to take the buyout, which quantities to 9 months of wage. Those that select to remain are reportedly required to spend six days on the workplace and clock 80+ hour weeks – draconian situations which have develop into desk stakes amongst staff at high AI corporations. 

“We don’t consider in work-life steadiness—constructing the way forward for software program engineering is a mission all of us care so deeply about that we couldn’t probably separate the 2,” wrote Cognition CEO Scott Wu within the e mail.

TechCrunch has reached out to Cognition for extra particulars.

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