
Elon Musk’s xAI Lays Off 500 Data Annotators Amid Strategic Shift Toward Specialist AI Tutors
San Francisco — Elon Musk’s artificial intelligence startup xAI has laid off approximately 500 employees from its data annotation division, marking a significant restructuring move aimed at refocusing the company’s resources on domain-specific expertise. The layoffs, which occurred late on Friday, September 12, 2025, were communicated via email and affected generalist AI tutors responsible for…