SpaceX laying off 10 percent of its workforce

Elon Musk shares prototype of SpaceX Starship

LIFTOFF Elon Musk has shared

This week marks a busy period for SpaceX, with the company due to launch another batch of satellites into space on its Falcon 9 rocket later on Friday.

Elon Musk's SpaceX will lay off about 10% of its more than 6,000 employees, a source familiar with the matter said on Friday.

SpaceX's website says it now has about 6,000 employees, meaning a 10 percent reduction would affect roughly 600 people.

SpaceX says its financial condition remains strong and that it's retaining investor confidence.

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.

Back in November, Bloomberg reported that SpaceX had taken out a $250 million loan, which was only half of the $500 million it was allegedly seeking.

SpaceX CEO Elon Musk offered the glimpse of the company's Starship test flight rocket on January 11.

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It is time for a new era of space exploration where astronauts once again launch into space from American soil. "This action is taken only due to the extraordinarily hard challenges ahead and would not otherwise be necessary", it reportedly added.

The company cited the need to be leaner to keep delivering for customers and develop spacecraft and space-based internet.

However, there are more than 400 open positions in various fields at different SpaceX facilities, judging by the company's website.

"Either of these developments, even when attempted separately, have bankrupted other organisations".

"This means we must part ways with some talented and hardworking members of our team", the statement continued.

Speaking about the employees who are being laid off, SpaceX said, "We are grateful for everything they have accomplished and their commitment to SpaceX's mission".

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