Elon Musk’s rocket company said its finances are healthy, but that it needs to make cuts so its most ambitious plans can succeed.
“To continue delivering for our customers and to succeed in developing interplanetary spacecraft and a global space-based Internet, SpaceX must become a leaner company,” the company said in a statement. “Either of these developments, even when attempted separately, have bankrupted other organizations. This means we must part ways with some talented and hardworking members of our team.”
“We are grateful for everything they have accomplished and their commitment to SpaceX’s mission,” the company said. “This action is taken only due to the extraordinarily difficult challenges ahead and would not otherwise be necessary.”
SpaceX has a booming business conducting uncrewed resupply trips to the International Space Station through contracts with NASA. The company also delivers satellites to orbit through contracts with the US military and commercial firms. SpaceX, along with competitor Boeing, are supposed to start flying astronauts to the ISS for NASA sometime this year.
But SpaceX’s new products are expected to cost billions to develop.
The company has already made headway on both projects.
And Musk recently shared images of an operational model for Starship that he plans to use to conduct short “hop” test flights this year at a facility in Texas.