More than 10% of its 6,000-person workforce would be laid off by SpaceX because of issues that the company is reportedly having with two of its most expensive projects.
While claiming that its financial position is strong enough, Elon Musk's space exploration company claimed that the jobs cuts were necessary for it to achieve its most ambitious plans.
"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," the company said in a statement. "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," the company said. "This action is taken only due to the extraordinarily difficult challenges ahead and would not otherwise be necessary."
Currently, the business for SpaceX is booming as it is regularly sending into space uncrewed resupply trips to replenish the International Space Station according to its contract with NASA. The company also has multiple contracts with the US military and commercial firms for sending into space satellites to orbit the Earth. Sometime later this year, it is expected that astronauts would be flown to the ISS for NASA by SpaceX together with rival Boeing.
Every launch brings in millions of dollars into the company as earning. And after initiating a $500 million equity sale in December, SpaceX was valued as a $30.5 billion firm. And according to the Wall Street Journal, last year, the company also accepted a debt of about $250 million from a first loan sale.
However the costs for development of new products by SpaceX are also expected to be in the billions.
The development of an ultra-powerful spaceship and rocket system was expected to cost the company between $2 billion and $10 billion according to an estimate made by its owner Musk in September last year. That rocket system has been recently renamed as Starship and Super Heavy.
SpaceX also has announced its intention and capabilities to fly tourists to space as well as is trying to develop technologies so that humans can be put on Mars someday soon.
Also in the development pipeline of SpaceX is a constellation of satellites that could help in installing high-speed internet down to the Earth one day. SpaceX anticipates that the satellite constellation would cost the company about $10 billion to deploy, according to a comment from SpaceX Chief Operating Officer Gwynne Shotwell during a TED Talk last year.
The company has already made headway on both projects.
Last year, the company deployed two Starlink demo satellites sometime this year, the company is hopeful that it would be able to deploy its first operational satellites - one of the thousands to be deployed for the constellation sometime later this year.
And the images of an operational model for Starship were shared by Musk recently which is being planned to be used for conducting short "hop" test flights in 2019 at a facility in Texas.
(Source:www.cnn.com)
While claiming that its financial position is strong enough, Elon Musk's space exploration company claimed that the jobs cuts were necessary for it to achieve its most ambitious plans.
"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," the company said in a statement. "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," the company said. "This action is taken only due to the extraordinarily difficult challenges ahead and would not otherwise be necessary."
Currently, the business for SpaceX is booming as it is regularly sending into space uncrewed resupply trips to replenish the International Space Station according to its contract with NASA. The company also has multiple contracts with the US military and commercial firms for sending into space satellites to orbit the Earth. Sometime later this year, it is expected that astronauts would be flown to the ISS for NASA by SpaceX together with rival Boeing.
Every launch brings in millions of dollars into the company as earning. And after initiating a $500 million equity sale in December, SpaceX was valued as a $30.5 billion firm. And according to the Wall Street Journal, last year, the company also accepted a debt of about $250 million from a first loan sale.
However the costs for development of new products by SpaceX are also expected to be in the billions.
The development of an ultra-powerful spaceship and rocket system was expected to cost the company between $2 billion and $10 billion according to an estimate made by its owner Musk in September last year. That rocket system has been recently renamed as Starship and Super Heavy.
SpaceX also has announced its intention and capabilities to fly tourists to space as well as is trying to develop technologies so that humans can be put on Mars someday soon.
Also in the development pipeline of SpaceX is a constellation of satellites that could help in installing high-speed internet down to the Earth one day. SpaceX anticipates that the satellite constellation would cost the company about $10 billion to deploy, according to a comment from SpaceX Chief Operating Officer Gwynne Shotwell during a TED Talk last year.
The company has already made headway on both projects.
Last year, the company deployed two Starlink demo satellites sometime this year, the company is hopeful that it would be able to deploy its first operational satellites - one of the thousands to be deployed for the constellation sometime later this year.
And the images of an operational model for Starship were shared by Musk recently which is being planned to be used for conducting short "hop" test flights in 2019 at a facility in Texas.
(Source:www.cnn.com)
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