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On September 13, 2025, xAI told about 500 people they no longer had jobs. These workers helped teach Grok, xAI’s chatbot, by cleaning and labeling data. The news was reported by Reuters and Business Insider today.
This is big news. The data team was one of xAI’s largest groups. The company said it will hire more specialist tutors instead.
About 500 data annotators lost work. These people were called AI tutors or data annotators. They looked at text and helped teach Grok how to understand things. Many were told by email. Some lost access to company systems right away. They will be paid until the end of their contracts or until November 30, the reports say.
xAI says it plans to move from general data annotators to specialist tutors. These new tutors will focus on specific fields like science, medicine, and finance. xAI says this change will help make Grok smarter in key areas. Reporters say the company will hire many specialists soon.
Data annotators do the hard work behind most chatbots. They label data and check model output. When a big team leaves, training plans can slow down. But xAI says it will hire more experts for special jobs. This could speed up niche features. For now, Grok may change how it learns and what it focuses on.
Workers lost jobs today. That is hard for families. Many will need new work soon. Other AI companies watch closely. Layoffs in AI training teams show how fast the industry can change. Reporters note xAI also lost some senior staff earlier this year. This shows xAI is reshaping its team quickly.
If you write a follow-up, check xAI’s official X post and Reuters/Business Insider for updates.
Industry watchers say shifting from general annotators to specialists can improve accuracy in parts of AI, but it can also slow broad training and cost more.
xAI laid off about 500 data annotators who helped train Grok, its chatbot. The company plans to hire specialist tutors instead.
Reports say roughly 500 people from the data annotation team were told they no longer had jobs. Many were paid through their contract end date.
xAI says it will change its training model and hire more specialists focused on specific fields like medicine, finance, and safety. This is the stated reason in company communications.
No. Grok keeps running. xAI says it will shift staff and hire specialists to continue improving the chatbot.
This article was written by the Ameer Hamza. We check news from trusted outlets like Reuters, Business Insider, and Engadget to make sure all information is correct and up to date. Our writers explain complex tech news in simple words so everyone can understand. If you find an error or want to share feedback, please contact us through the Tekznology website.