March 20, 2019

SpaceX cuts 6000 of its manpower citing ‘extraordinarily difficult times ahead’

SpaceX cuts 6000 of its manpower citing ‘extraordinarily difficult times ahead’

 

SpaceX is cutting its manpower by 10%, what amounts to over 6,000 employees due to what it describes as ‘extraordinarily difficult times ahead.’

The company, founded by maverick CEO Elon Musk, announced the ‘parting ways’ with employees was a necessary move needed to help the company optimally operate to achieve its lofty goals.

 

‘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 organisations,’ a spokesman said in an email.

ALSO READ: SpaceX to send 2 “private citizens” to the moon

In June, Elon Musk fired at least seven people in the senior management team leading a SpaceX satellite launch project, it was reported in November. The firings were related to disagreements over the pace at which the team was developing and testing its Starlink satellites.

 

SpaceX’s Starlink program is competing with OneWeb and Canada’s Telesat to be the first to market with a new satellite-based internet service.

 

The management shakeup involved Musk bringing in new managers from SpaceX headquarters in California to replace a number of the managers he fired in Seattle.

 

 

Last month, SpaceX launched its first US national security space mission, when a SpaceX rocket carrying a US military navigation satellite blasted off from Florida’s Cape Canaveral.

ALSO READ: SpaceX Prepare To Launch In First National Security Space Mission

In December, the Wall Street Journal reported that SpaceX was raising $500m, taking its valuation to $30.5bn (£23.7bn).

 

The California-based company had earlier outlined plans for a trip to Mars in 2022, to be followed by a manned mission to the red planet by 2024.

 

This reduction of its manpower echoes the same cost-cutting management approach taken by another of Elon Musk’s company, electric car maker Tesla Inc. Tesla said in June it was cutting 9% of its workforce by removing several thousand jobs across the company in cost reduction measures.

 

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