SpaceX is planning to lay off hundreds of its employees. This will constitute about 10 percent of the workforce of the company. This plan of the company is in harmony with the aim to become a leaner company.
The news that SpaceX will be laying off its employees was first reported by Eric Berger of Ars Technica. This has now been confirmed by TechCrunch.
According to a report published by TechCrunch today, SpaceX itself has confirmed it about the layoffs.
This news comes amidst the ambitious and great plans of SpaceX of developing as well as testing a spacecraft which will be interplanetary. This plan will go along with simultaneous orbital launches which will be performed frequently by SpaceX.
According to the report by TechCrunch, SpaceX stated it that the layoffs are a pursuit by the company so as to become a “leaner company.”
This act is necessary for SpaceX because of challenges which are faced by the company. The challenges were described as “extraordinary” by the company.
Explanation by SpaceX
SpaceX had stated that it is willing to continue with the delivery to its customers as well as to succeed in the development of the interplanetary spacecraft along with Internet which is global space based. For doing so it is necessary that the company becomes lean.
The company further explained that other organizations who had attempted either of these developments were left bankrupt. This was true when the organizations did separate attempts for the two developments.
This simple fact explains that SpaceX will have to part ways with some members of its team.
Therefore the main reason behind this layoff by SpaceX will be for the managing of the costs.
In 2017, Gwynne Shotwell, the COO of SpaceX had stated the employees of the company to be 7000. Therefore this layoff of 10 percent would account to about 700 people losing their jobs at SpaceX.
TechCrunch tried getting information in depth regarding the layoffs. This was to know the departments that will be affected the most: sales, manufacturing, engineering or any other specific project.
However, the company refused to the requests of TechCrunch and did not offer any answer to the question.
There are alarms that are ringing because of this layoff by SpaceX. The company, however, has given straightforward answers that it is still solvent as well as successful.
Reasons are inexplicable
The reasons given by SpaceX do not explain much because the company does not have so much to trim as to become lean. This is in comparison to other aerospace companies. SpaceX is already young as well as small.
Considering the small size of the company, one cannot see many middle managers who could be laid off. Similar questions arise when considering the breadth of the services that are provided by SpaceX.
However, considering the recent advancements of the company, especially the improvement in the Falcon 9 and Falcon Heavy launch of vehicles, it might be true that the money is moving out at the same pace as it is getting in.
This might act as the most pivotal explanation for the actions of the company.
Source: Tech Crunch, Business Insider