SpaceX To Lay Off 10 Percent Of Its Workforce

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Elon Musk's Space Exploration Technologies Corp. plans to cut about 10 percent of its workforce, according to people familiar with the matter.

In an email written by President Gwynne Shotwell obtained by The LA Times, employees were informed of the cuts and told "this was a very hard but necessary decision".

SpaceX is developing Starship alongside their Super Heavy rocket to ferry humans to and from the Moon, Mars, and even potentially other locations in the solar system. "This means we must part ways with some talented and hardworking members of our team", the company said.

Elon Musk-led company, SpaceX will be cutting 10% of its 6,000 employee workforce as part of a new strategic realignment, as the company ventures forth into the next generation of projects.

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Previously, the private space company said that it has been profitable for years, thanks to the lucrative contracts that it struck from clients that include the US Air Force and NASA.

He added that the trim was "only due to the extraordinarily hard challenges ahead". "We are grateful for everything they have accomplished and their commitment to SpaceX's mission", the company continued.

At the company's Texas launch facility, which is still under construction, a prototype of Starship was recently completed.

The Los Angeles Times reported the job cuts earlier on Friday. The company's valuation rose to $31 billion after initiating a $500 million equity sale.

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Company CEO Elon Musk has said that he expects the first hops to be within the next four weeks, but that is likely an optimistic schedule.

Straship rocket is a fully reusable vehicle created to take humans and supplies to Mars and also to dramatically cut travel time within Earth, according to an IANS report.

Another $10bn (£7.7bn) project called Starlink would create a constellation of satellites to provide affordable broadband internet service. The first uncrewed test flight was delayed due to the partial government shutdown and is slated for some time in February.

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