Elon Musk’s rocket company SpaceX plans to reduce its workforce by about 10% of its more than 6,000 employees across the country, the company announced Friday.
In an email written by President Gwynne Shotwell obtained by The LA Times, employees were informed of the cuts and told “this was a very difficult but necessary decision.”
“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.”
The news came soon after the successful launch of the 10 Iridium communications satellites into orbit atop a Falcon 9 rocket from a base in California, the first of many planned flights this year.
This isn’t the first time SpaceX has made job cuts. In June, Musk fired seven people in the senior management team over disagreements about the pace of work on the Starlink satellites.
The Wall Street Journal reported back in December that the company planned to raise $500 million, taking its valuation to $30.5 billion.
The email by Shotwell states the company will be offering a minimum of eight weeks pay, resume help, and job searches to the laid-off workers.