Elon Musk's rocket company said its finances are healthy, but that it has to make savings so that its most ambitious plans can succeed.
"To continue delivering to our customers and succeeding in developing interplanetary space probes and a global space-based Internet, SpaceX needs to become a leaner company," the company said in a statement. "Each of these developments, even when attempted separately, has bankrupted other organizations, which means we have to part with some talented and hard-working members of our team."
"We are grateful for everything they have achieved and for their commitment to SpaceX Mission," the company said. "This action is taken only because of the extremely difficult challenges and would otherwise not be necessary."
SpaceX has a booming business embarking on unprepared supplies to the US International Space Station through contracts with NASA. The company also supplies satellites for orbit through contracts with US military and commercial companies. SpaceX and its competitor Boeing will fly NASA astronauts to the ISS sometime this year.
The new SpaceX products, however, are expected to cost billions. In September, Musk expects SpaceX to spend between $ 2 and $ 1
The company has already made progress on both projects.
And Musk recently shared images of a Starship-powered model, planning to conduct short "hop" test flights this year at a facility in Texas.