SpaceX is laying off nearly 10 percent of its workforce.
The private space company says the layoffs are part of a strategic realignment of its workforce.
The company is focusing on a new spacecraft – called the Starship – designed to take people to Mars and other deep space destinations. Founder Elon Musk tweeted photos of a stainless steel prototype set for test launches in the coming weeks. It's also working on a global space-based satellite Internet system.
The company says it will continue to manufacture and launch rockets reliably in the coming years, and is working toward launching humans to the International Space Station for NASA.
SpaceX has facilities in Cape Canaveral, Texas, California and Washington State.
Full statement from a SpaceX spokesperson: “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. 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. We are grateful for everything they have accomplished and their commitment to SpaceX’s mission. This action is taken only due to the extraordinarily difficult challenges ahead and would not otherwise be necessary.”