SpaceX Laying-off 10% of Employees as Launch Business Wanes

Close to 600 employees of SpaceX have lost or will lose their jobs over the next few days as the space transportation company founded by Elon Musk …

Close to 600 employees of SpaceX have lost or will lose their jobs over the next few days as the space transportation company founded by Elon Musk fights to stay in business as the number of rocket launches is expected to drop this year.

The total of those being let go represents close to 10% of the company’s total workforce of some 6,000 employees. Most of those to be fired work at the company’s headquarters and rocket factory located at Hawthorne, California.

Analysts say this mass firing is the first large-scale reduction of its workforce since SpaceX was founded in 2002. The company, however, has laid-off many employees before but not on this scale.

In a statement, SpaceX said its ability to continue delivering for its customers and to succeed in developing interplanetary spacecraft and a global space-based Internet means “SpaceX must become a leaner company.”

And in a sop to the employees it fired, SpaceX said it is grateful for everything they’ve accomplished and their commitment to SpaceX’s mission. SpaceX said the employee firings were the result of the extraordinarily difficult challenges ahead and would not otherwise be necessary.

In late 2018, SpaceX President and CEO Gwynne Shotwell warned there might be a slowdown in the number of satellites to be launched by firms in the geo-telecommunications industry. These commercial launches are the lifeblood of SpaceX.

SpaceX says it costs more than $60 million to launch a Falcon 9 rocket on a commercial mission such as deploying a telecommunications satellite to Low Earth Orbit (LEO). On the other hand, it will cost a client some $90 million to use the more powerful Falcon Heavy rocket.

“Next year (2019) you won’t see as many launches as you see in 2018,” said Shotwell. “2019 is a lower-cadence year.”

Ironically, Space X had its best year in 2018. It successfully launched 21 missions, giving it the U.S. record for the most number of launches in a year.

It’s always unfortunate when there are large layoffs, noted Jan Vogel, executive director of the South Bay Workforce Investment Board.

He said the board is in touch with SpaceX and is ready to provide transitional services to employees that have been let go. We’re ready to help people, said Vogel.

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Elon Musk to fire around 10% of his SpaceX employees

Tesla founder and SpaceX chief executive officer Elon Musk and chief operating officer Gwynne Shotwell set to lay off about 10 percent of its SpaceX …


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閱讀中文版本

Tesla founder and SpaceX chief executive officer Elon Musk and chief operating officer Gwynne Shotwell set to lay off about 10 percent of its SpaceX employees.

In an all hands meeting at the headquarter on Friday, the rocket company told employees to go home and check their inboxes to learn if they were getting a pink slip, and announced that SpaceX would be closed over the weekend.

Since attendance at all-hands meetings is not required at SpaceX, some people first learned about the layoffs via email.

About 600 employees will be affected. Separation agreements were sent starting on Friday evening. SpaceX pledged to offer a minimum of eight weeks’ pay, career coaching assistance such as resume-writing and job searches, and other severance benefits.

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, SpaceX stated.

The company currently employs about 6,400 people. SpaceX aims to run its first cargo mission to Mars in three years, and to send humans there in a 2024 mission.

In October 2018, Musk reportedly let go of at least seven senior management officers at the SpaceX facilities in Washington, as he was not satisfied with the speed of developing and testing satellites.

The story was first reported by CNBC.

Photo/The New York Times

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Elon Musk to fire around 10% of his SpaceX employees

Tesla founder and SpaceX chief executive officer Elon Musk and chief operating officer Gwynne Shotwell set to lay off about 10 percent of its SpaceX …


“Informative, Interactive, Inspiring. The conference brings new ideas and insights about current issues in talent and HR management”

Join the seventh annual Talent Management Asia, Asia’s leading HR strategy conference.

Register now for super early-bird savings!

閱讀中文版本

Tesla founder and SpaceX chief executive officer Elon Musk and chief operating officer Gwynne Shotwell set to lay off about 10 percent of its SpaceX employees.

In an all hands meeting at the headquarter on Friday, the rocket company told employees to go home and check their inboxes to learn if they were getting a pink slip, and announced that SpaceX would be closed over the weekend.

Since attendance at all-hands meetings is not required at SpaceX, some people first learned about the layoffs via email.

About 600 employees will be affected. Separation agreements were sent starting on Friday evening. SpaceX pledged to offer a minimum of eight weeks’ pay, career coaching assistance such as resume-writing and job searches, and other severance benefits.

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, SpaceX stated.

The company currently employs about 6,400 people. SpaceX aims to run its first cargo mission to Mars in three years, and to send humans there in a 2024 mission.

In October 2018, Musk reportedly let go of at least seven senior management officers at the SpaceX facilities in Washington, as he was not satisfied with the speed of developing and testing satellites.

The story was first reported by CNBC.

Photo/The New York Times

Human Resources magazine and the HR Bulletin daily email newsletter:

Asia’s only regional HR print and digital media brand.

Register for your FREE subscription now »

Related Posts:

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Elon Musk to fire around 10% of his SpaceX employees

Tesla founder and SpaceX chief executive officer Elon Musk and chief operating officer Gwynne Shotwell set to lay off about 10 percent of its SpaceX …


“Informative, Interactive, Inspiring. The conference brings new ideas and insights about current issues in talent and HR management”

Join the seventh annual Talent Management Asia, Asia’s leading HR strategy conference.

Register now for super early-bird savings!

閱讀中文版本

Tesla founder and SpaceX chief executive officer Elon Musk and chief operating officer Gwynne Shotwell set to lay off about 10 percent of its SpaceX employees.

In an all hands meeting at the headquarter on Friday, the rocket company told employees to go home and check their inboxes to learn if they were getting a pink slip, and announced that SpaceX would be closed over the weekend.

Since attendance at all-hands meetings is not required at SpaceX, some people first learned about the layoffs via email.

About 600 employees will be affected. Separation agreements were sent starting on Friday evening. SpaceX pledged to offer a minimum of eight weeks’ pay, career coaching assistance such as resume-writing and job searches, and other severance benefits.

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, SpaceX stated.

The company currently employs about 6,400 people. SpaceX aims to run its first cargo mission to Mars in three years, and to send humans there in a 2024 mission.

In October 2018, Musk reportedly let go of at least seven senior management officers at the SpaceX facilities in Washington, as he was not satisfied with the speed of developing and testing satellites.

The story was first reported by CNBC.

Photo/The New York Times

Human Resources magazine and the HR Bulletin daily email newsletter:

Asia’s only regional HR print and digital media brand.

Register for your FREE subscription now »

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Elon Musk’s SpaceX Is Laying Off Hundreds Off Workers

Elon Musk’s space exploration company SpaceX is cutting 10 percent of its workforce in an effort to cut down on costs and waste, The Los Angeles …

Elon Musk’s space exploration company SpaceX is cutting 10 percent of its workforce in an effort to cut down on costs and waste, The Los Angeles Times reported.

Musk – as SpaceX CEO – and company President Gwynne Shotwell broke the news to the estimated 6,400-employee workforce Friday at an all-hands meeting at the company’s headquarters in Hawthorne, California. A company-wide email was also sent to make sure those not present at the meeting received the message of the “very difficult but necessary decision.” (RELATED: NASA Opens Investigation Into SpaceX Over Elon Musk’s Weed Smoking)

“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,” SpaceX said in a statement, according to The Los Angeles Times. “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 company began mailing out pink slips Friday, offering a severance package that included eight weeks of pay, job search aid and other benefits. The layoffs hit the company evenly across locations and levels of management, two laid-off employees told CNBC.

Documents filed with the state of California showed that the company let go of 577 employees at its headquarters in Hawthorne, CNBC reported.

The SpaceX headquarters is shown in Hawthorne, California, U.S. September 19, 2018. REUTERS/Mike Blake

The SpaceX headquarters is shown in Hawthorne, California, U.S., Sept. 19, 2018. REUTERS/Mike Blake

SpaceX has been financially secure, winning contracts from companies and governments to place satellites in orbit and two multibillion-dollar NASA contracts to resupply the International Space Station and develop a pod that can carry astronauts to the space station. Shotwell said in May 2018 the company was profitable despite major setbacks, such as a 2016 explosion of one of its Falcon 9 rockets, CNBC reported.

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