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Inside xAI’s Overnight Workforce Purge
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Inside xAI’s Overnight Workforce Purge

Brutal New Layoff Model?

On Friday night, xAI laid off 500 workers, roughly one-third of its data annotation team, in a stealth operational test disguised as a restructure.

This wasn’t about performance. It was about precision sorting, domain realignment, and pushing generalists out.

In this episode, I break down:

  • The real reason behind xAI’s sudden pivot from generalist AI tutors to hyper-specialized roles

  • The 24-hour “test” that determined who stayed and who didn’t… no appeals, no context

  • What it means when a Wharton undergrad runs your workforce purge

  • Where the top xAI talent is flowing next… and what that says about the broader AI hiring market

  • Why this isn’t just a layoff story… it’s a new model of workforce culling

  • How other companies are likely to follow this brutal playbook

If you think this couldn’t happen at your company, you’re already behind.

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