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xAI, Elon Musk's AI company, laid off at least 500 data annotation workers on Friday. The company cited a strategic shift towards specialist AI tutors, ending most generalist roles. Employees received short notice and were given severance pay. This follows recent senior staff departures and internal reorganizations. Despite the layoffs, xAI announced plans to significantly expand its specialist AI tutor team.

Prepared by Jonathan Pierce and reviewed by editorial team.