FEBRUARY 1, 2019 — MUSK ADMITS TWO “INSANE” PROJECTS AT SPACEX COULD BANKRUPT THE COMPANY.
In an investor call on the fortunes of Musk’s primary company, Tesla, Must said that he attributed the 10% reduction in force to two “insane projects” which he identified as “Starship” and “Starlink” projects which had the power to bankrupt the company.
Starship is the Mars rocket to transport 100 humans to the Moon and Mars.
Starlink is the rockets and network of satellites to provide global broadband high-speed internet services.
Musk used the two projects to differentiate the types of layoffs at both SpaceX and Tesla, the latter being a ruthless effort at cost cutting to make electric vehicles more affordable.
Original post…
Hawthorne, California-based Space Exploration Technologies Corporation (SpaceX), the iconic disposable rocket company headed by Tesla's mercurial Elon Musk, has announced a major reduction in force that will see 10% or approximately 700 employees laid off as an austerity measure and because the company claims that they have "completed their mission."
The layoffs includes production managers, avionics technicians, machinists, inventory specialists and propulsion technicians, and support personnel; 577 located at the company's Hawthorne headquarters.
In the finest example of corporate speak, a company spokesperson announced, “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.”
The company has claimed that it is facing conditions greater than those previously acknowledged publicly. It is also not known the extent to which SpaceX's assets have been deployed to other Musk ventures such as The Boring Company.
Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere ... are you now wondering, Am I Next?