Last Friday, SpaceX, a company that is owned by billionaire Elon Musk, revealed that it is set cut approximately 10 percent of its 6,000 employees.
The firm announced that it would be parting ways with approximately 600 of its employees because of the “extraordinarily difficult challenges ahead.”
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. However, it seems like the firm is tightening its belt to make sure that it has the money for its biggest projects, such as the development of interplanetary rockets and a space-based internet that is meant to cover the entire planet.
In an email, a spokesperson disclosed: “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.”
He added: “Either of these developments, even when attempted separately, have bankrupted other organizations.”
Musk removed seven senior figures from the firm last June after he became frustrated with the slow pace at which the team were developing and testing the Starlink satellites of the company.
The Starlink project is set to compete with Canada’s Telesat and OneWeb to become the first to market with a new satellite-based internet service.
Last month, the company launched its first national security space mission with one of its rockets carrying a military navigation satellite of the United States of America.
According to a report by the Wall Street Journal, SpaceX was reported as raising $500 million (£389.14 million) to raise its total worth to $30.5 billion at the end of the year.
The firm has announced its plans for a trip to Mars to be achieved by 2022. A manned mission is also set to follow two years later.
Tesla, another one of the companies, also announced redundancies in June last year. It stated that it would be removing nine percent of its workforce, which is equivalent to thousands of jobs.