SpaceX has reduced its workforce by approximately 60 employees within the Grok Imagine video-generation team. This development, reported on November 13, 2026, follows a series of ongoing staff reductions and leadership departures that have occurred since the merger of xAI into SpaceX in February 2026.
Grok Imagine serves as a multimodal feature for the Grok AI system, enabling users to generate images and short video clips. Despite the layoffs, the company has not issued a formal statement regarding the future of the product, nor has it provided an updated roadmap or timeline for its video-generation capabilities.
The current restructuring is part of a broader reorganization effort within the combined SpaceX entity. Since the merger, the AI operations have been divided into four primary focus areas. These organizational changes reflect an operational strategy aimed at streamlining workflows across the company.
The company has experienced significant personnel shifts in the past, including the dismissal of approximately 500 data annotators in September 2025. Investors are closely monitoring these developments, as the company maintains a valuation of approximately $1.25 trillion and faces high expectations for its AI product momentum.
