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SpaceX reduces 10 percent of its workforce to become a leaner company



  Elon Musk, head of SpaceX, decided to cut his workforce by 10 percent.
Enlarge / Elon Musk, head of SpaceX, decided to reduce 10 percent of his workforce.

SpaceX will lay off up to ten percent of its workforce, the company said Friday night. The company described the job cuts as "a strategic reorientation" to ensure it is on track for success in the long term.

They were announced to employees on Friday in an email from Company President and Chief Operating Officer Gwynne Shotwell. The company employs more than 6,000 people.

"To continue delivering to our customers and succeeding in the development of interplanetary spacecraft and a global, space-based Internet, SpaceX must become a leaner company," said a company official.

"Each of these developments, even when attempted separately, has ruined other organizations," he continued. "This means we must part with some talented and hard-working members of our team, and we're grateful for everything they've achieved and for their commitment to the SpaceX mission, a move that is only made because of the extremely difficult challenges and would otherwise not be required. "

This move occurs several weeks after SpaceX claims to raise up to $ 750 million from a loan, but decided to reduce that amount to $ 250 million for less favorable terms than expected.

Money for New Projects

Company officials have repeatedly stated that SpaceX is profitable thanks to a mix of revenue from commercial launch contracts, NASA development funds, and US Air Force launch prices. SpaceX launched the Falcon 9 rocket 20 times in a row In 201

8, it flew the Falcon Heavy rocket for the first time. With the development of a reusable first stage, the company has perhaps the most innovative and cost-effective booster in the world.

SpaceX is also undertaking the costly development of a satellite Internet system, Starlink, as well as the next generation of rockets, super heavy and a spaceship, Starship, to send people to Ma's rs. Both projects are several years away from a major source of revenue.

SpaceX makes these cutbacks as it moves into a critical year when the first launch of humans into orbit by a private company is likely through NASA's commercial occupation program

A source in the aerospace industry hinted that the size and timing of Friday's cuts could indicate SpaceX boss Elon Musk's desire to cut costs and reduce some of his lower performing counterparts. As the company slimmers down, there will be more resources to invest in its ambitious development projects.

Ironically, the development of SpaceX's reasonably priced Falcon 9 rocket in recent years has in part spurred other launch providers in the United States including the United Launch Alliance and government-backed companies around the world to reduce costs and increase staff to compete for commercial start-up contracts.


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