
Elon Musk‘s xAI laid off not less than 500 employees on its data annotation team on Friday evening.
The corporate despatched out emails notifying staff that it was planning to downsize its staff of generalist AI tutors, in keeping with a number of messages seen by Enterprise Insider.
“After a radical evaluate of our Human Information efforts, we have determined to speed up the enlargement and prioritization of our specialist AI tutors, whereas scaling again our concentrate on normal AI tutor roles. This strategic pivot will take impact instantly,” the e-mail learn. “As a part of this shift in focus, we now not want most generalist AI tutor positions and your employment with xAI will conclude.”
Employees had been advised that they might be paid by both the tip of their contract or November 30, however their entry to firm techniques could be terminated the day of the layoff discover.
The data annotation team is xAI’s largest staff. The employees play a key function in creating Grok by instructing the chatbot how one can perceive the world by contextualizing and categorizing uncooked knowledge.
The primary Slack room utilized by knowledge annotators had greater than 1,500 members on Friday afternoon; screenshots seen by Enterprise Insider Friday night confirmed that quantity all the way down to just a little over 1,000, with that quantity persevering with to say no over the course of reporting this story.
On Friday evening, xAI posted on X that it was hiring for roles and plans to develop its staff of specialist AI tutors by “10X.”
Specialist AI tutors at xAI are including large worth. We are going to instantly surge our Specialist AI tutor staff by 10x!
We’re hiring throughout domains like STEM, finance, drugs, security, and lots of extra. Come be a part of us to assist construct truth-seeking AGI!https://t.co/htpc2RijLG
— xAI (@xai) September 13, 2025
The layoff notices had been despatched out just a few days after a number of senior-level staff, together with the staff’s former head, not too long ago had their Slack accounts deactivated, Business Insider reported earlier this week.
Within the days that adopted, employees had been pulled into one-on-ones to evaluate their tasks, tasks, and achievements, 9 employees advised Enterprise Insider. They had been requested if there have been any coworkers they needed to focus on for his or her laborious work, the employees mentioned.
XAI advised employees on Thursday evening to organize for a reorganization of the information annotation staff.
In a team-wide announcement on Thursday evening, the corporate requested some employees to drop the whole lot and concentrate on a collection of assessments to find out their roles on the firm going ahead, asking employees to finish them by Friday morning West Coast time. The assessments could be used to type annotators and their supervisors based mostly on their strengths and pursuits, in keeping with a screenshot seen by Enterprise Insider.
The discover for tutors to organize for testing was posted by Diego Pasini, who ten employees mentioned not too long ago turned the staff’s chief. Pasini requested employees to take not less than one take a look at by the next morning. The assessments lined conventional domains like STEM, coding, finance, and drugs, in addition to quirkier specialties like Grok’s “personality and model behavior” and “shitposters and doomscrollers.”
The corporate additionally listed assessments for employees aiming to enhance the chatbot’s security, together with by “purple teaming” the bot, in addition to assessments devoted to audio and video content material.
Pasini joined xAI in January, in keeping with his LinkedIn profile. He’s “on depart” from his undergraduate research on the Wharton College of Enterprise on the College of Pennsylvania, his LinkedIn reveals.
Pasini and a consultant for xAI didn’t instantly reply to a request for remark.
The announcement mentioned the assessments had been geared toward supervisors and generalist tutors. XAI divides its groups between STEM, coding, finance, authorized, and media specialties, in addition to a big pool of generalist tutors who’re tasked with a variety of assignments, from annotating video and audio to writing.
Two employees mentioned the STEM and coding assessments befell on CodeSignal, a expertise evaluation platform, whereas different assessments had been hosted on Google Types.
Greater than 200 employees responded to Pasini’s message with a inexperienced check-mark emoji, and over 100 replied to the put up with questions and feedback, in keeping with a screenshot seen by Enterprise Insider.
One employee expressed frustration with the brief time span that was given for the assessments, in keeping with a screenshot seen by Enterprise Insider.
“Doing this after folks have gone house for the day is fairly shady,” the employee wrote. The employee’s Slack account was deactivated shortly after, a number of employees mentioned.
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