Cognition Lays Off 30 Employees Amid Tumultuous Transition

AI startup Cognition laid off 30 employees last week as it integrates rival company Windsurf, offering buyouts to the remaining 200 staff members. The move comes after a tumultuous stretch for Windsurf, which was initially acquired by Google for $2.4 billion.

Cognition claimed that all Windsurf employees would receive financial compensation upon acquisition. However, an email obtained by The Information reveals that employees have been given until August 10 to decide whether they want to take a buyout package worth nine months of salary. Those who choose to stay are reportedly required to work long hours, including six days a week and exceeding 80-hour workweeks.

The terms have sparked concerns about the company’s priorities, with CEO Scott Wu stating that “we don’t believe in work-life balance—building the future of software engineering is a mission we all care so deeply about.” TechCrunch has reached out to Cognition for further details.

Source: https://techcrunch.com/2025/08/05/three-weeks-after-acquiring-windsurf-cognition-offers-staff-the-exit-door