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SpaceX Plans to Reduce Workforce By 10 Percent

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SpaceX, the widely known rocket company owned by Elon Musk, is planning to terminate 10 percent of its employees. The company will lay off a large portion of the 6000-employee workforce. This announcement was made last Friday, January 11, 2019, with the reason being the presence of tough challenges in the future as cited by the company.

In an email, a spokesperson from SpaceX said that they aim to be a ‘leaner company,’ to be able to continue their ventures in there interplanetary and space research. Another important aspect of the layoff is avoiding bankruptcy which has happened to many similar organizations before.

Last June 2018, Musk also fired seven workers from his senior management team, replacing them with new managers coming from California. The layoff attributed to the disputes over their Starlink satellite developments. The Starlink program by SpaceX competes with companies all over the world to become the pioneer of a space-based Internet in the market.

In relation with their cost-cutting measures, Musk’s car maker company, Tesla Inc. will also perform a layoff on about 9 percent of their workforce.