Shotwell Says It Must Become A 'Leaner Company' To Survive

SpaceX is planning shed about 10 percent of its workforce, according to an internal memo from company president Gwynne Shotwell obtained by the Los Angeles Times. The company currently has about 6,000 employees.

Shotwell (pictured in file photo) said that the decision was a "very difficult" one to make. In a statement, SpaceX said that it needs to become "a leaner company" to succeed in developing interplanetary spacecraft and space-based global Internet services. “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," the statement said.

This would not be the first workforce reduction at the company. Several senior managers were fired last summer over disagreements about the pace of testing and development of its Starlink satellite program. Meanwhile, company founder Elon Musk recently announced a "hopper test" of a prototype spacecraft that he believes will one day carry humans to Mars. The production version of the "Starship" is expected to cost billions of dollars.

Shotwell's email said that the company is offering a minimum of eight weeks pay and other benefits to employees who are being let go, including career coaching, resume help and job searches.

(Images from file)

FMI: Source report