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SpaceX to layoff 10 percent of workforce


By Singh

(Reuters) - Elon Musk's rocket company 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, must become a leaner company. Either of these developments, even when attempted separately, have bankrupted other organizations", a said in an email.

In June, fired at least seven people in the senior management team leading a satellite launch project, 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 and Canada's to be the first to market with a new

The management shakeup involved Musk bringing in new managers from in to replace a number of the managers he fired in

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

In December, 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 company, 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 Singh and in Bengaluru; Editing by and Sandra Maler)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sat, January 12 2019. 08:21 IST