Cognition Offers Buyouts to Windsurf Staff Weeks After Acquisition

Just three weeks after acquiring rival AI coding startup Windsurf, Cognition has initiated significant workforce changes. According to a report from The Information, Cognition recently laid off 30 employees and is now offering buyouts to nearly 200 remaining staff members from Windsurf.

Rapid Changes After a Tumultuous Year

The move comes at the end of a turbulent period for Windsurf. Earlier this year, the company was nearly acquired by OpenAI, only for the deal to fall through. Shortly after, Windsurf’s CEO, co-founder, and research leads departed for Google in a highly publicized $2.4 billion reverse-acquihire—where Google acquired the talent rather than the company. Eventually, Windsurf was acquired by Cognition, the company behind the AI coding agent Devin.

Promises vs. Reality

At the time of the acquisition, Cognition announced that all Windsurf employees would receive financial compensation and emphasized the value of bringing on what it called a “world-class” team to develop next-generation coding tools. However, the recent buyout offers suggest the company’s main interest may have been Windsurf’s intellectual property, rather than its talent pool.

Challenging Choices for Employees

According to an internal email obtained by The Information, Windsurf staff have until August 10 to accept a buyout equivalent to nine months’ salary. Those who choose to remain reportedly face demanding requirements, including six-day in-office work weeks and more than 80 hours on the clock weekly—conditions that are becoming increasingly common among top AI startups.

In the email, Cognition’s CEO Scott Wu reportedly 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.”

What’s Next for Cognition and Windsurf?

This development marks another chapter in the ongoing competition for top talent and intellectual property in the fast-evolving AI sector. While Cognition has not yet provided further comment, the situation highlights the high-pressure environment and rapid changes that have become hallmarks of the AI industry.

References

• Cognition offers buyouts to newly acquired Windsurf staff – The Information
• Windsurf’s CEO goes to Google, OpenAI’s acquisition falls apart – TechCrunch
• Cognition acquires Windsurf – TechCrunch
• Cognition Labs acquisition announcement – X (formerly Twitter)
• OpenAI, Meta, and the battle for AI talent – Wired