Australia Markets closed

Musk's SpaceX Plans to Cut About 10% of Workforce

Dana Hull

(Bloomberg) -- Elon Musk’s Space Exploration Technologies Corp. plans to cut about 10 percent of its workforce, according to people familiar with the matter.

The company cited the need to be leaner to keep delivering for customers and develop spacecraft and space-based internet. Representatives for SpaceX didn’t return calls or emails seeking comment.

SpaceX launched its first rocket of 2019 early Friday. It has a busy year ahead, with a critical demonstration flight scheduled for February for its Crew Dragon spacecraft that will eventually carry American astronauts to the International Space Station.

Last week, SpaceX disclosed in a regulatory filing that it had sold $273 million in equity as part of plans to raise a total of $500 million. The Wall Street Journal reported in December that the rocket company was planning to raise the funds at a $30.5 billion valuation.

The Los Angeles Times reported the job cuts earlier Friday.

To contact the reporter on this story: Dana Hull in San Francisco at dhull12@bloomberg.net

To contact the editors responsible for this story: Craig Trudell at ctrudell1@bloomberg.net, Melinda Grenier

For more articles like this, please visit us at bloomberg.com

©2019 Bloomberg L.P.