Overview

• In late July, Cognition cut 30 former Windsurf staff and has offered nine months of salary as buyouts to roughly 200 remaining employees, with decisions due by August 10.
• Remaining employees must commit to six-day office weeks and exceed 80 hours of work, reflecting the company’s strict performance requirements.
• Scott Wu defended the extreme performance culture on X, arguing that relentless dedication is necessary for the future of software engineering.
• At the July 14 acquisition closing, Cognition had promised full compensation for all Windsurf employees but has since shifted to selective layoffs and exit offers.
• Observers warn that split-deal structures like reverse acqui-hires and IP-focused acquisitions intensify talent wars and may attract regulatory scrutiny.