xAI reportedly lays off 500 workers from data annotation team

In Brief Posted: 8:50 AM PDT · September 13, 2025 Image Credits:Klaudia Radecka/NurPhoto / Getty Images Anthony Ha xAI reportedly lays off 500 workers from data annotation team Elon Musk’s AI startup xAI laid off 500 team members on Friday night, according to internal messages viewed by Business Insider. These emails reportedly announce an immediate “strategic pivot,” with the company deciding to  “accelerate the expansion and prioritization of our specialist AI tutors, while scaling back our focus on general AI tutor roles.” “As part of this shift in focus, we no longer need most generalist AI tutor positions and your employment with xAI will conclude,” xAI reportedly wrote. According to Business Insider, these cuts represent about one-third of…

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