Skip to content
Advertisement
SpaceX’s AI group cuts about 60 jobs from Grok Imagine video team

SpaceX’s AI group cuts about 60 jobs from Grok Imagine video team

SpaceX official logo (public domain, Wikimedia Commons) — CryptoBriefing brand treatment

The layoffs extend a run of staff reductions and leadership exits since xAI merged into SpaceX in February 2026

SpaceX’s AI group has laid off about 60 employees from its Grok Imagine video-generation team, according to a report dated November 13, 2026.

The cuts land in the middle of a reorganization that has been running since xAI merged with SpaceX in February 2026.

What happened to the Grok Imagine team

Grok Imagine is the multimodal creative feature attached to Grok, the AI system originally developed by xAI. It covers both image and video generation, so users can ask the chatbot for pictures or short clips.

The latest round reportedly hit the video side of that operation. Roughly 60 people on the video-generation team are out.

Advertisement

The team also saw reductions in prior months, which makes the November cuts look less like a one-off and more like a continuing trim.

No formal announcement has addressed what the layoffs mean for the product. There has been no public roadmap update and no stated timeline for the video features going forward.

A merger that keeps rearranging the furniture

To understand the cuts, it helps to rewind to February 2026. That is when xAI, Elon Musk’s AI startup, was folded into SpaceX, his rocket company.

The combined entity is currently valued at approximately $1.25 trillion.

Since the merger, the AI operation has been reorganized into four main focus areas:

  • Grok Main and Voice, the core chatbot and its voice capabilities
  • Coding, focused on programming tools
  • Imagine, home to image and video generation
  • Macrohard

Multiple co-founders and senior researchers have departed since the merger.

The restructuring appears to be driven by Musk’s aggressive operational approach, with a stated aim to streamline work inside the combined company.

The longer pattern of cuts

One of the largest earlier cuts came in September 2025, when around 500 data annotators were let go.

What this means for Grok Imagine and the merged company

For investors watching the combined SpaceX entity, continued layoffs and restructuring may raise concerns about the stability and direction of the AI initiatives. A valuation of approximately $1.25 trillion carries expectations, and AI is a field where product momentum is closely scrutinized.

Disclosure: This article was edited by Diego Almada Lopez. For more information on how we create and review content, see our Editorial Policy.