SpaceX will lay off 10 percent of its staff to fund projects

Elon Musk shares prototype of SpaceX 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. "Either of these developments, even when attempted separately, have bankrupted other organizations", a spokesman said in an email.

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".

About 600 of the firm's 6,000-strong workforce are being laid off, with the company blaming "extraordinary hard challenges ahead" for its decision. "This means we must part ways with some talented and hardworking members of our team".

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

Last month, SpaceX launched its first national security space mission for the USA military, using a Falcon 9 rocket to carry a $500 million Global Positioning System satellite made by Lockheed Martin.

The Starship is SpaceX's new class of super-heavy launch vehicle that will replace the company's current crop of products, and will allow for potential missions around the Moon and to Mars.

The company is also delivering supplies to the International Space Station (ISS).

And The Wall Street Journal reported last month that the company was raising $500 million from investors to help launch its satellite internet service. However, the launch and satellite initiatives the company is pursuing will each require several billion dollars to complete. In June, Musk fired seven people in the senior management team over disagreements about the pace of work on the Starlink satellites.

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