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Mass layoffs at Elon Musk’s xAI: 500 data workers axed as Grok chatbot faces big changes

Mass layoffs at Elon Musk’s xAI: 500 data workers axed as Grok chatbot faces big changes

Elon Musk's AI startup xAI has laid off about 500 employees from its data annotation team, which is the company's largest division responsible for training its chatbot Grok. The layoffs were communicated via email on the evening of September 12, 2025, with employees losing system access immediately but being paid until the end of their contracts or November 30 at the latest.

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