Elon Musk said on Friday that his company, SpaceX, had completed the installation of a Starship reusable space-rocket system launch vehicle for a suborbital test flight. "Either of these developments, even when attempted separately, have bankrupted other organizations", SpaceX said in a statement.
Speaking about the employees who are being laid off, SpaceX said, "We are grateful for everything they have accomplished and their commitment to SpaceX's mission". "This action is taken only due to the extraordinarily hard challenges ahead and would not otherwise be necessary", it reportedly added. "This means we must part ways with some talented and hardworking members of our team".
Straship rocket is a fully reusable vehicle created to take humans and supplies to Mars and also to dramatically cut travel time within Earth, according to an IANS report.
Hawthorne-based SpaceX is offering a minimum of eight weeks' pay and other benefits to those affected, according to an email sent on Friday to employees by SpaceX president Gwynne Shotwell.
Another Elon Musk company, electric auto maker Tesla Inc, said in June it was cutting 9 percent of its workforce by removing several thousand jobs across the company in cost reduction measures.
Founded by Musk, SpaceX makes most of its money from multibillion dollar contracts with NASA and satellite launches.
Formerly known as the BFR, Musk announced on Thursday that the spaceflight company's test version of the Starship, dubbed the "hopper", has just finished being assembled at SpaceX's launch site in Boca Chica Village, Texas. The firings were related to disagreements over the pace at which the team was developing and testing its Starlink satellites.
According to The Wall Street Journal, the company planned to raise $500 million in funding, pushing its value to $30.5 billion.