Shortly after three 22-year-old co-founders were celebrated as the world’s “youngest self-made billionaires,” their artificial intelligence recruiting startup, Mercor, reportedly halted a major project involving thousands of contractors — and then offered some of those workers a chance to return at a lower hourly rate, Forbes and Business Insider reported.
Mercor has pushed back on criticisms, asserting that shifting project needs and budget updates are normal for temporary contract work. The company says that its intention is to provide “greater earning stability and consistent access to work,” according to an email cited by the two outlets.
However, multiple workers expressed frustration with the abrupt cancellation and adjusted pay structure, leading to public backlash as Mercor disputes what it describes as “inaccurate” claims.
The situation unfolded on Tuesday, Nov. 11, when contractors were informed that their project had been terminated, five workers who spoke anonymously told Forbes. They said they received confirmation the following day that the work was officially over.
“It was all very sudden. I have never seen anything like that and have worked on a few AI projects,” one contractor told the publication.
Teams at Mercor had been reviewing video components for Instagram and Facebook for months, with expectations based on managerial guidance that the work would continue through December, the outlet reported.
Some workers also alleged they received fewer hours than promised and experienced periodic pauses in workflow. They said they were earning $21 an hour, Forbes reported.
The company acknowledged certain issues through a message sent to contractors, citing feedback related to hourly caps and inconsistent workloads, the outlet said. Mercor stated that it planned to create a more stable work environment in the future.
According to Forbes, Mercor then offered workers the chance to return for a new project with more weekly hours — but at a reduced rate of $16 per hour. The email explained that the shift was meant to prioritize consistency over fluctuating opportunities.
Still, some contractors voiced disappointment.
“We are real people who deserve some notice, or warning or some consideration,” one worker told Forbes. “You don’t just dump thousands of people — that’s not right.”
A contractor who accepted the new assignment shared a similar sentiment with Business Insider, explaining that many couldn’t afford to refuse lower-paying work. “We wanted to boycott this, but are not in a financial place to do so,” they said. “Even if it’s demoralizing.”
In a statement, a Mercor spokesperson said the company has always been clear that roles are temporary and project-based and reiterated that the contested claims are inaccurate, according to Forbes.
CEO Brendan Foody emphasized that the temporary nature of the job was made clear from the beginning, the outlet reported.
Mercor — which connects contractors with a wide range of professional work, including journalism, legal guidance, gaming expertise and more — advertises that workers can average $90 per hour through its platform.
In late October, co-founders Foody, Surya Midha and Adarsh Hiremath appeared in headlines after Mercor was valued at $10 billion following $350 million in new funding, Forbes previously reported. The surge pushed the trio into the spotlight as the youngest self-made billionaires on record, all having attended the same California high school.
“It’s definitely crazy,” Foody told Forbes at the time. “It feels very surreal — beyond anything we could have imagined two years ago.”
