Space Exploration Technologies Corp. is looking to pare down operations.
Elon Musk’s aerospace company first announced plans to lay off nearly 600 people − approximately 10 percent of the Hawthorne-based company’s workforce – in a move the company said is necessary “to continue delivering for our customers and to succeed in developing interplanetary spacecraft and a global space-based Internet.”
“This means we must part ways with some talented and hardworking members of our team,” a company statement read. “We are grateful for everything they have accomplished and their commitment to SpaceX’s mission. This action is taken only due to the extraordinarily difficult challenges ahead and would not otherwise be necessary.”
Eva Behrend, spokeswoman for SpaceX, said affected employees will be given a minimum eight weeks of pay, benefits and career coaching. A filing with California’s Employment Development Department said 577 employees would be let go by March 12.
Shortly after the layoff news, the aerospace company also announced plans to relocate the development and construction of its Starship test vehicle from Long Beach to the SpaceX facility in South Texas. Behrend cited the company’s need “to streamline operations.”
“SpaceX is developing and will test the Starship test vehicle at our site in South Texas. This decision does not impact our current manufacture, design, and launch operations in Hawthorne and Vandenberg Air Force Base in California. Additionally, SpaceX will continue recovery operations of our reusable Falcon rockets and Dragon spacecraft at the Port of Los Angeles.”
SpaceX’s funding comes largely from commercial satellite launches, but the company received several national security contracts last year, including a $2.6 billion project from NASA to launch astronauts to the International Space Station.
SpaceX said it remains financially strong with continued investor confidence in its vision and long-term prospects. It is currently valued at $30.5 billion, following a $500 million fundraising round in December.
