xAI Cuts Over 500 Data Annotation Workers While Expanding Specialist Tutor Team
xAI has laid off at least 500 employees from its data annotation team, the company's largest workforce, after notifying them by email on September 12. Affected staff will receive salary until the end of their contracts on November 30, but their system access was revoked immediately. The company responded on X by announcing a ten‑fold increase in its specialist AI tutor team and a new hiring push across STEM fields. The specialist tutors will provide high‑quality inputs, labels, and annotations, including audio and video data. The layoffs follow recent high‑profile departures, including CFO Mike Liberatore, and come after the launch of Grok 4.







