SpaceX to layoff 10 percent of workforce




FILE PHOTO: SpaceX headquarters is shown in Hawthorne, California.
FILE PHOTO: SpaceX headquarters is shown in Hawthorne, California.  

By Kanishka Singh

(Reuters) - Elon Musk's rocket company SpaceX will reduce its workforce by about 10 percent of the company's more than 6,000 employees, it said on Friday.

The company said it will "part ways" with some of its manpower, citing "extraordinarily difficult challenges ahead."

"To continue delivering for our customers and to succeed in developing interplanetary spacecraft and a global space-based Internet, SpaceX must become a leaner company. Either of these developments, even when attempted separately, have bankrupted other organizations", a spokesman said in an email.

In June, Elon Musk fired at least seven people in the senior management team leading a SpaceX satellite launch project, Reuters reported in November. The firings were related to disagreements over the pace at which the team was developing and testing its Starlink satellites.

SpaceX's Starlink program is competing with OneWeb and Canada's Telesat to be the first to market with a new satellite-based internet service.

The management shakeup involved Musk bringing in new managers from SpaceX headquarters in California to replace a number of the managers he fired in Seattle.

Last month, SpaceX launched its first U.S. national security space mission, when a SpaceX rocket carrying a U.S. military navigation satellite blasted off from Florida's Cape Canaveral.

In December, the Wall Street Journal reported that SpaceX was raising $500 million, taking its valuation to $30.5 billion.

The Hawthorne, California-based company had earlier outlined plans for a trip to Mars in 2022, to be followed by a manned mission to the red planet by 2024.

Another Elon Musk company, electric car maker Tesla Inc, said in June it was cutting 9 percent of its workforce by removing several thousand jobs across the company in cost reduction measures.


(Reporting by Kanishka Singh and Supriya Roy in Bengaluru; Editing by Rosalba O'Brien and Sandra Maler)

COMMENTS

More Related News

Grimes Says She Loves Elon Musk, a "Super-Interesting" Person, for "Some Reason"
Grimes Says She Loves Elon Musk, a "Super-Interesting" Person, for "Some Reason"

In a new interview with WSJ magazine, Grimes announces her new persona, 'c,' and discusses her still ongoing, controversy-causing relationship with Elon Musk.

SEC says Musk
SEC says Musk's contempt defense 'borders on the ridiculous'

Lawyers for the Securities and Exchange Commission, in a response to Musk, wrote that when the contempt motion was filed in February, Musk had not had a single tweet approved by a company lawyer, violating a requirement of a court-approved settlement order. The October securities fraud settlement stemmed

Elon Musk tweet about Tesla violates settlement agreement, U.S. regulator tells court
Elon Musk tweet about Tesla violates settlement agreement, U.S. regulator tells court

A tweet about Tesla Inc production targets by Elon Musk was "a blatant violation" of a court order to get his written communications pre-approved, U.S. securities regulators told a judge on Monday, doubling down on the government's demand to find the Tesla CEO in contempt of a previous fraud settlement. The Securities and Exchange Commission wrote in a filing in federal court in Manhattan that Musk's Feb. 19 tweet to his more than 24 million Twitter followers claiming the electric vehicle-maker would build around 500,000 cars in 2019 contained or could have contained information material to Tesla or its shareholders. The ongoing public battle between Tesla's chief executive and the top...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Economy

facebook
Hit "Like"
Don't miss any important news
Thanks, you don't need to show me this anymore.