Posted on 01/15/2019 7:29:11 AM PST by BenLurkin
The statement did not disclose the size of the layoffs, but a company source, speaking on background, estimated the cuts at 10 percent of the workforce. That would mean approximately 600 or more employees are losing their jobs, based on prior statements by company officials that the company more than 6,000 employees.
The layoffs, a company source said, don't indicate near-term financial problems at the company but rather a redistribution of resources to focus on development of its next-generation launch system and broadband constellation. They also reflect, note others in the industry, the belief that SpaceX grew quickly and likely needed to restructure in any event to lower its costs.
SpaceX has recently been raising a new $500 million funding round that would value the company at an estimated $30 billion. However, the launch and satellite initiatives the company is pursuing will each require several billion dollars to complete. Musk estimated in September that its new launch system would cost somwhere in the range of $2 to 10 billion
(Excerpt) Read more at space.com ...
Trump’s fault?
My daughter is graduating in June and already has a job offer from SpaceX.
She emailed them to see if she was affected by this and they replied that she was not.
This is just a structural reorganization.
Sounds to me as though they have finished a project/program so into normal production, and the next project/program won’t require as many personnel.
Pretty standard personnel flex. Though most companies have gone to contractors/consultants (gig economy) these days for the flex to save a lot of hassle.
SpaceX just showing how efficient they are to attract investors
Trim the fat. Stay lean.
Non-hackers are shown the door.
She emailed them to see if she was affected by this and they replied that she was not.
Of course she's not affected. Companies do this all the time. They lay off a senior engineer with 15+ years of experience, (and the paycheck to go with it,) and with that same money can hire three or four new grads.
Elon at it again
Congrats on your daughter’s graudation and new job.
Companies are starting to catch on that having, and even worse, publicly anouncing mass layoffs is a self-destructive policy.
It is well known in HR circles that any layoff (usually targeted at the “bottom” performers) also results in the loss of top performers who view the need for such layoffs as poor management, which it is.
It also creates the perception among job seekers that the company is at best a second-rate place to work, again prejudicing even potential employees against the company. This ensures that new hires will not be top prospects that usually get to choose between multiple offers.
No sane job seeker is going to choose a company where layoffs are expected over one with a reasonable expectation of job security.
It is worth noting that while SpaceX has a lot of notable accomplishments, it has a reputation as a horrific place to work where long hours, high pressure and micromanagement are the norm.
Corporate growth cycle. They’re now entering into a period of bureaucratic growth.
that’s a simplistic way to generalize
you don’t fire experienced staff that way. You need them to train the new staff.
Things are getting a little tense in the economic world these days. Maybe people don’t want to spend money on vacations in “space”, otherwise known as low earth orbit.
Did I ping you to this already ?
Thanks fieldmarshaldj. Nope, you hadn't.
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