Published: Sat, January 12, 2019
Economy | By

Elon Musk shows off prototype of Mars-bound rocket, Starship

Elon Musk shows off prototype of Mars-bound rocket, Starship

The private spaceflight company SpaceX, which tests its rocket motors at its facility in McGregor west of Waco, is reducing its workforce companywide by about 10 percent as part of what a source with knowledge of the situation describes as a strategic realignment.

In a statement late January 11, the company confirmed that SpaceX is laying off a portion of its workforce in the first large-scale reduction of its workforce since the company was founded in 2002.

"Either of these developments, even when attempted separately, have bankrupted other organizations", it added.

"We are grateful for everything they have accomplished and their commitment to SpaceX's mission".

Another Elon Musk company, electric vehicle maker Tesla Inc, said in June it was cutting 9 percent of its workforce by removing several thousand jobs across the company in cost reduction measures. It added that the trim down was "only due to the extraordinarily hard challenges ahead".

In a statement, a company spokesman confirmed the layoff without specifying how many employees will be released.

A company source says SpaceX remains financially strong and can continue to "manufacture and launch at a reliable cadence in the years ahead".

Elon Musk's Space X company is financially healthy and was recently valued at almost U.S. $30 billion.

Musk has estimated it will cost up to USA $10 billion to develop a spaceship that could send humans to Mars.

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