Cognition's Controversial Windsurf Acquisition: Talent Promises vs. Harsh Realities

Artificial intelligence coding startup Cognition has sparked industry backlash following its acquisition of competitor Windsurf, with recent developments revealing a stark contrast between public statements and internal actions.

Acquisition Fallout: Layoffs and Buyout Offers

Three weeks after completing the acquisition, Cognition laid off 30 employees last week and presented buyout packages to approximately 200 remaining staff, according to internal documents obtained by The Information. This move directly contradicts Cognition's public assurance during the acquisition announcement that it would welcome Windsurf's "world-class talent" to develop cutting-edge coding tools.

Windsurf's Turbulent Journey

The acquisition marks the latest twist in Windsurf's dramatic corporate saga:

• Near-acquisition by OpenAI in early 2025
• Key personnel exodus when Google executed a "reverse acquisition," poaching the CEO, co-founder, and research director
• Final purchase by Cognition in July 2025

Industry analysts suggest these events indicate Cognition primarily sought Windsurf's intellectual property rather than maintaining its workforce.

Severe Work Conditions for Remaining Employees

An internal email reveals:

• Employees must decide on buyout offers (equivalent to nine months' salary) by August 10
• Those who stay face:
  • Six-day workweeks
  • 80+ hour weekly commitments
  • "High-intensity" performance expectations

The demands have raised concerns about employee welfare and potential violations of labor standards in several jurisdictions where Windsurf operates.

Key Points

• Cognition acquired Windsurf three weeks ago amid promises to retain talent
• Company has since laid off 30 employees and offered buyouts to 200 more
• Remaining staff face six-day, 80+ hour workweeks if they decline buyouts
• Move suggests Cognition prioritized IP over human capital in acquisition
• Decision deadline for employees set for August 10