Why xAI Cut 500 Data Annotators While Expanding Professional AI Mentors

In mid‑September, Elon Musk’s xAI announced a sudden layoff of roughly 500 data‑annotation staff—about a third of the team—while simultaneously pledging to grow its professional AI‑mentor workforce tenfold and imposing post‑layoff testing to reassign remaining employees.

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Why xAI Cut 500 Data Annotators While Expanding Professional AI Mentors