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On the evening of September 12, 2025, Elon Musk's xAI company implemented a significant round of layoffs, letting go of at least 500 workers from its data labeling team. This move affected roughly one - third of the entire data labeling team.
The company promptly issued notifications to the affected employees, informing them of a downsizing within the General Artificial Intelligence Mentor team. This decision is part of a strategic pivot, as the company aims to shift its focus towards specialized AI Tutors.
In terms of compensation, laid - off employees will continue to receive pay until either the end of their existing contract or November 30, whichever comes first. However, on the very day they are laid off, they will lose access to the company's systems.
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