SpaceX has reported large-scale layoffs: fired 10% of employees

On Friday, January 11, the President and COO of SpaceX , Gwynne Shotwell told staff that the company is «compelled to part with some talented and hard-working members of the… team.»

Under reduction will get about 10% of employees. At this time, the state of the manufacturer of missiles, including more than 6 thousand people. In his letter Shotwell called the move «difficult but necessary» on the way «strategic realignment», which purpose — achievement of SpaceX’s success in the long term.

SpaceX will reduce its workforce by 10 percent. Statement below. Story later tonight. pic.twitter.com/AxFaz53LI8

— Eric Berger (@SciGuySpace) January 11, 2019

«To continue the delivery [of cargo into orbit] for customers and to achieve success in the development of interplanetary spacecraft, and the global space of the Internet, SpaceX to become more compact company. Every development, even if you took a single attempt, bankrupted others. So we will have to part with some talented and hard-working members of our team. We are grateful to them for all they have done and for their commitment to the mission of SpaceX. This step is undertaken because of the extremely difficult tasks that lie ahead [of the company], otherwise this would need arose».

This decision was made shortly after SpaceX tried to raise about $750 million credit funds. Due to the unfavorable conditions of the loan amount had to be reduced to $250 million in SpaceX Representatives repeatedly stated that the company receives funds from the proceeds of contracts for commercial launches, awards of the US air force and also from the development funds NASA.

In 2018, the company made 20 times of launches of the Falcon 9 (in 2017 there were 18) and for the first time launched a rocket , the Falcon Heavy.

In addition, experts SpaceX is now hard at work on developing:

  • Satellite Internet system Starlink. Because of disagreements about the pace of the development and testing of this program in the summer of 2018 were dismissed several senior managers at the office in Redmond (WA).
  • Missiles of the next generation of Super Heavy.
  • Starship spacecraft to deliver humans to Mars.

Becoming more compact, SpaceX will free up more funds for investment in ambitious projects.

Experts in the aerospace field I believe for the mass dismissal is the will Elon musk not only to optimize costs but also to get rid of insufficient efficient staff. By and large, layoffs expected: SpaceX in production need to use already fewer people, because the missiles are reused, and there is no need to annually collect for the family of Falcon hundreds of Merlin engines.

Employees who will get under reduction, will receive as compensation a salary for 8 weeks and assist SpaceX in finding employment in other companies in the aerospace sector.

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