Troubled Times for SpaceX as it Trims 10% of its Workforce

Speaking to reporters, one SpaceX spokesperson divulged that the company was looking to make a substantial 10% cut of its workforce.

She shared that the company had been forced to make the move because of the turbulent times ahead. In light of this, they felt they would be better placed in storming the weather with a leaner workforce.

News about the layoffs was first brought to the public limelight when the Los Angeles Times discovered that Elon Musk’s brainchild company would be making an incredible 10% cut on members of staff.

An email dispatched to employees recently indicated that the company was going to offer affected employees with a send-home package of about 8 weeks pay plus additional benefits. Part of the package is said to include CV assistance and career coaching help.

The news broke just after the company launched a Falcon 9 rocket into orbit from their operational base in California.

SpaceX shared that the rocket was carrying aboard 10 communications satellites which made their way to space from the Vandenberg Air Force Base.

Human Resource

As per their website, the company which is situated in Hawthorne, CA, currently has slightly more than 6,000 employees.

Their website goes at length in explaining the reason behind the key cuts. They share that the move was arrived at after they discovered that they were lacking in some areas like service delivery which inhibited their goal of leaving an imprint in the spacecraft industry.

With a leaner workforce, the company has expressed optimism that they will be able to conquer to the worldwide space-based internet. They further explained that many organizations have found themselves on the losing side after having tried similar exploits in times gone past.

Elon Musk recently unveiled a new rocket prototype going by the name “Starship”

Since they are fully committed to having things run as per the usual, SpaceX mentions that they will be better placed in avoiding bankruptcy with the new move.

In a rare sense of remorse, they mentioned that they were eternally grateful for their staff members who have enabled them to reach the heights they’ve been able to climb in recent times.

In their closing remark, the company further re-emphasized that they had been forced to take action because of the hurdles they predict they’ll encounter in the days to come.

World Stage

Before the company came to the fore with the news, they had bagged a couple of awards on the international stage as one of the key technology disruptors in the world. At the peak of their powers in May, the company was valued at about $28 billion.

Just this month, SpaceX was able to successfully raise an incredible $273 million via a stock of their choice. This data was made public by a filing they made with the U.S. Securities and Exchange Commission.

During the holidays in December, word around town, courtesy of The Wall Street Journal, of course, was that SpaceX was looking to raise about $500 million. Given the fact that their valuation stood at $30 billion in December, once the funding is successful, the company will be worth the tall figure of $30.5 billion.

Moon Man

Indeed, what Elon Musk has been able to achieve is no mean feat. By partnering up with Nasa on satellite launches, he’s been able to generate millions worth of dollars.

At present, his focus seems to have shifted towards making that next step with the internet. The mogul is said to have elaborate plans of making a mammoth internet project aptly named Starlink.

Last November, the SpaceX struck a deal with U.S. officials to launch 12,000 satellites into earth’s orbit in a bid to boost wireless internet access to the masses. Objectively, they’ve set the 2020s as the target for the provision of cheap web connectivity.

As a multi-faceted entrepreneur, Musk is also actively involved with Tesla. The automobile company has recently been in the news thanks to their flagship Model 3 electric car. Given the environmentally conscious route they are treading on, it’s little wonder that the company has won over so many fans around the world.

Exploits

Notably, he’s diversified into other markets with investments in the Boring Company, Neuralink, and Open AI. Of the 3, many analysts project the Boring Company as having the most potential since it focuses on infrastructure development around the country by conceptualizing tunnels.

While he’s largely been in the news for all the right reason, there have been a couple of times where Musk has been caught in the crosshairs by media houses.

He received lots of flak in the last year when he confided that he suffers from exhaustion because of all the hours he puts into his craft. Critics also took a stab at him after he ridiculed the U.S. Securities and Exchange Commission after he was given struck with a $20 million fine.