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SpaceX is cutting 10 percent of their staff to fund their ambitious projects

  • SpaceX is cutting 10 percent of their entire workforce citing “extraordinarily difficult challenges ahead”.
  • The company is taking on costly endeavors that have bankrupted other organizations.
  • Industry sources suspect that this could also be a way to get rid of low-performing members of staff.

SpaceX will let go of 10 percent of their 6,000+ workforce to “become a leaner company”.

In a statement provided to the media, SpaceX announced that they are taking these actions in order to “succeed in developing interplanetary spacecraft and a global space-based internet”:

“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. This means we must part ways with some talented and hardworking members of our team. We are grateful for everything they have accomplished and their commitment to SpaceX’s mission. This action is taken only due to the extraordinarily difficult challenges ahead and would not otherwise be necessary.”

According to Reuters, SpaceX is running a program called Starlink which aims to be the first satellite-based internet service ever and according to their spokesperson, these jobs cuts were necessary to ensure the success of the program.

This comes after Elon Musk fired at least seven people from his senior management team who were leading a satellite launch project.

The firings were in relation to disagreements about the speed at which the Starlink programs were being developed and tested.

By becoming a more leaner company they will have more money to fund their ambitious projects and deliver for clients which include the likes of NASA and the US Air Force.