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Musk’s XAI Just Laid Off Hundreds of Workers Tasked With Training Grok

Elon Musk‘s xAI laid off at least 500 workers on its data annotation team on Friday night.
The company sent out emails notifying employees that it was planning to downsize its team of generalist AI tutors, according to multiple messages viewed by Business Insider.
“After a thorough review of our Human Data efforts, we’ve decided to accelerate the expansion and prioritization of our specialist AI tutors, while scaling back our focus on general AI tutor roles. This strategic pivot will take effect immediately,” the email read. “As part of this shift in focus, we no longer need most generalist AI tutor positions and your employment with xAI will conclude.”
Workers were told that they would be paid through either the end of their contract or November 30, but their access to company systems would be terminated the day of the layoff notice.
The data annotation team is xAI’s largest team. The workers play a key role in developing Grok by teaching the chatbot how to understand the world by contextualizing and categorizing raw data.
The main Slack room used by data annotators had more than 1,500 members on Friday afternoon; screenshots viewed by Business Insider Friday evening showed that number down to a little over 1,000, with that number continuing to decline over the course of reporting this story.
On Friday night, xAI posted on X that it was hiring for roles and plans to grow its team of specialist AI tutors by “10X.”
Specialist AI tutors at xAI are adding huge value. We will immediately surge our Specialist AI tutor team by 10x!
We are hiring across domains like STEM, finance, medicine, safety, and many more. Come join us to help build truth-seeking AGI!https://t.co/htpc2RijLG
— xAI (@xai) September 13, 2025
The layoff notices were sent out only a few days after several senior-level employees, including the team’s former head, recently had their Slack accounts deactivated, Business Insider reported earlier this week.
In the days that followed, workers were pulled into one-on-ones to review their responsibilities, projects, and achievements, nine workers told Business Insider. They were asked if there were any coworkers they wanted to highlight for their hard work, the workers said.
XAI told workers on Thursday night to prepare for a reorganization of the data annotation team.
In a team-wide announcement on Thursday night, the company asked some workers to drop everything and focus on a series of tests to determine their roles at the company going forward, asking staff to complete them by Friday morning West Coast time. The tests would be used to sort annotators and their supervisors based on their strengths and interests, according to a screenshot viewed by Business Insider.
The notice for tutors to prepare for testing was posted by Diego Pasini, who ten workers said recently became the team’s leader. Pasini asked workers to take at least one test by the following morning. The tests covered traditional domains like STEM, coding, finance, and medicine, as well as quirkier specialties like Grok’s “personality and model behavior” and “shitposters and doomscrollers.”
The company also listed tests for workers aiming to improve the chatbot’s safety, including by “red teaming” the bot, as well as tests dedicated to audio and video content.
Pasini joined xAI in January, according to his LinkedIn profile. He is “on leave” from his undergraduate studies at the Wharton School of Business at the University of Pennsylvania, his LinkedIn shows.
Pasini and a representative for xAI did not immediately respond to a request for comment.
The announcement said the tests were aimed at supervisors and generalist tutors. XAI divides its teams between STEM, coding, finance, legal, and media specialties, as well as a large pool of generalist tutors who are tasked with a wide range of assignments, from annotating video and audio to writing.
Two workers said the STEM and coding tests took place on CodeSignal, a skills assessment platform, while other tests were hosted on Google Forms.
More than 200 workers responded to Pasini’s message with a green check-mark emoji, and over 100 replied to the post with questions and comments, according to a screenshot viewed by Business Insider.
One worker expressed frustration with the short time span that was given for the tests, according to a screenshot viewed by Business Insider.
“Doing this after people have gone home for the day is pretty shady,” the worker wrote. The worker’s Slack account was deactivated shortly after, multiple workers said.
Do you work for xAI or have a tip? Contact this reporter via email at gkay@businessinsider.com or Signal at 248-894-6012. Use a personal email address, a nonwork device, and nonwork WiFi; here’s our guide to sharing information securely.
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Workers fired, placed on leave for Charlie Kirk comments after assassination

The killing of Charlie Kirk is sparking debate about political violence in the U.S., as well as the kinds of professional repercussions employees who speak out about the conservative activist’s death — and other hot- button issues — might face.
A number of businesses and other organizations have shown employees the door this week because of their public remarks about Kirk, who was assassinated on Wednesday while giving a speech at Utah Valley University. Among those to lose their jobs or face other sanctions: a political pundit, a university employee, a sports reporter and a U.S. secret service agent.
Private employers have the law on their side when it comes to removing a worker who makes public statements that the business views as potentially harmful, according to legal experts.
“A private company can generally fire an employee for public comments, even political ones, if those comments are deemed to harm the company’s reputation, violate workplace policy or disrupt the business,” workplace attorney Marjorie Mesidor told CBS MoneyWatch.
Multiple firings
Employees in a range of industries, as well as in academia, are finding themselves in hot water over remarks they made about Kirk’s death or his political beliefs.
PHNX Sports, an online sports news site focused on Arizona, announced the firing of reporter Gerald Bourguet after he said on social media on Wednesday, in a since-deleted post, that “Refusing to mourn a life devoted to that cause is not the same thing as celebrating gun violence.”
“Truly don’t care if you think it’s insensitive or poor timing to decline to respect an evil man who died,” he added.
Bourguet declined to comment when reached by CBS MoneyWatch.
MSNBC said it cut ties with analyst Matthew Dowd after he said in an on-air conversation that Kirk had pushed incendiary speech and that “hateful thoughts lead to hateful words, which then lead to hateful actions.” In a public statement, Comcast accused Dowd of making “an unacceptable and insensitive comment about this horrific event.”
“That coverage was at odds with fostering civil dialogue and being willing to listen to the points of view of those who have differing opinions. We should be able to disagree, robustly and passionately, but, ultimately, with respect. We need to do better,” Comcast executives said.
Dowd, the former chief strategist for Republican President George W. Bush, apologized in a Substack post on Friday, saying he hadn’t meant to imply Kirk was to blame for the violence that killed him, the AP reported. But Dowd, a long-time political analyst at ABC News before joining MSNBC in 2022, also accused the network of caving to pressure to fire him.
“The right wing media mob ginned up, went after me on a plethora of platforms, and MSNBC reacted to that mob,” he wrote on Substack. “Even though most at MSNBC knew my words were being misconstrued, the timing of my words forgotten … and that I apologized for any miscommunication on my part, I was terminated by the end of the day.”
Middle Tennessee State University said in statement that it had fired a university employee over “inappropriate and callous comments on social media concerning the horrific and tragic murder of Charlie Kirk.”
Nasdaq, in a statement posted on X, said it dismissed an employee over social media posts related to Kirk’s shooting that the stock exchange said “were a clear violation of our policy.”
In a Facebook post, the U.S. Secret Service said it placed an agent who it said expressed negative opinions about Kirk on leave. “The U.S. Secret Service will not tolerate behavior that violates our code of conduct. This employee was immediately put on administrative leave, and an investigation has begun,” a U.S. Secret Service spokesperson said in a statement.
United Airlines told CBS News that it took action against employees who the company said had publicly commented on Kirk’s death. “Our mission at United Airlines is to connect people and unite the world. So we’ve been clear with our customers and employees that there’s zero tolerance for politically motivated violence or any attempt to justify it,” the carrier said in a statement to CBS News.
U.S. Secretary of Transportation Sean Duffy applauded United for “for doing what’s right by placing pilots celebrating the assassination of Charlie Kirk out of service. They must be fired,” in a statement on X.
“There’s no room for political violence in America and anyone applauding it will face the consequences. ESPECIALLY those we count on to ensure the safety of the flying public,” Duffy wrote.
Few protections
First Amendment protections are generally limited for workers in the private sector, according to attorneys.
“Employers often have a strong legal basis to terminate an employee if their public comments, especially on a high-profile and sensitive topic like a murder, cause reputational damage or customer backlash,” Mesidor said.
Some states — California, Louisiana, Minnesota, Missouri, Nebraska, Nevada, South Carolina and West Virginia — do have laws to protect employees from being fired for their conduct off the job, including their political speech and activity, but most do not. Maynard Nexsen attorney Andrew Kragie told CBS MoneyWatch that workers at private employers typically have little protection from punishment for their public comments.
“If someone says, ‘Thank goodness this person was assassinated,’ then generally their employer can fire them,” he said. That’s because most workers are employed at-will, meaning either party can terminate the contract at any time, for any reason, he explained.
“So, most employees in the private sector can be disciplined based on what you say on social media, even if your account doesn’t identify you as an employee,” Kragie added.
contributed to this report.
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‘Hacks’ star Hannah Einbinder criticized ICE and shouted for ‘free Palestine’ in Emmy speech

“Hacks” star Hannah Einbinder is going viral for her Emmys acceptance speech, in which she criticized Immigration and Customs Enforcement, called to “free Palestine” and gave a shoutout to the Philadelphia Eagles.
Einbinder won the award for outstanding supporting actress in a comedy series for her role as Ava Daniels. It was her first Emmy win.
After thanking the creators and cast of the HBO Max show, Einbinder then segued into the night’s first political remarks. “I just want to say, finally, go Birds, F— ICE, and free Palestine. Thank you,” she said, referring to the nationwide immigration raids in the U.S. and the war in Gaza.
Speaking to Variety after her speech, Einbinder said she wanted to talk about the war because it’s “an issue very dear to my heart.”
“I have friends in Gaza who are working as front-line workers, as doctors right now in the north of Gaza to provide care for pregnant women and for school children. To create schools in the refugee camps, and it’s an issue that’s really close to my heart for many reasons,” she said. “I feel like it is my obligation as a Jewish person to distinguish Jews from the state of Israel because our religion and our culture are such an important and long-standing, basically, like, institution that is really separate to this sort of ethnonationalist state.”
Einbinder’s “Hacks” co-star Meg Stalter broke the formal dress code for the night, opting to wear a T-shirt and jeans with a black purse that said “CEASE FIRE!” while “Monsters” star Javier Bardem wore a kaffiyeh on the red carpet.
“It feels good to bring the attention to where it really needs to be, which is Gaza,” he told “USA Today.”
He added, “Film workers for Palestine do not target any individuals based on identity. Film workers for Palestine target those complicit, film companies and institutions, that are whitewashing or justifying Israel’s genocide in Gaza and its apartheid regime.”
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Donald Trump Wants To Scrap Quarterly Earnings Reports For U.S. Companies

President Donald Trump said he think U.S. companies should report earnings every six months instead of quarterly, a controversial change that would disrupt longstanding practice and requires approval by the nation’s securities regulator.
“Subject to SEC Approval, Companies and Corporations should no longer be forced to “Report” on a quarterly basis (Quarterly Reporting!), but rather to Report on a “Six (6) Month Basis,” Trump wrote on Truth Social this morning.
“This will save money, and allow managers to focus on properly running their companies. Did you ever hear the statement that, “China has a 50 to 100 year view on management of a company, whereas we run our companies on a quarterly basis???” Not good!!!”
China in fact does requires quarterly reports but the U.K. and Europe only ask companies to deliver financial results every six months. The U.S. shifted to the quarterly model in 1970.
Trump had asked for the change in the U.S. during his first term as well.
The barrage of numbers every three months is a time suck for companies and executives and has been criticized for leading to a focus on short-term thinking and planning. Supporters say the transparency they provide every 90 days is key for investors and necessary for markets to function properly.
CEO taking companies private have commented for years on the relief on not having to square off with investors every 90 days with numbers that can fluctuate short term for a whole host of reasons but meanwhile cause big movements in the stock price on earnings days. In media, for instance, shares of companies like Spotify and Snap can be extremely volatile after earnings reports. That’s also been the case for Netflix, which stopped reporting quarterly subscriber numbers, calling them a distraction from other key measures of the health of is business.
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