SpaceX is redundant 10% of its workforce – with the technology company that says it must become "leaner" if it wants to carry out ambitious projects such as the creation of a spaceship that can transport astronauts to Mars.
About 600 of the 6,000-man workforce of the company is fired, with the company blaming "extraordinary tough challenges for its decision."
The redundancies were announced to workers by e-mail by President Spacex Gwynne Shotwell, according to reports from the Los Angeles Times  In a statement, SpaceX said: "To continue to provide for our customers and succeed in developing interplanetary spacecraft and a global space-based Internet, SpaceX must become a leaner company.
"One of these developments, even if attempted separately, has bankrupted other organizations.
"This means we have to separate ourselves with some talented and hard-working members of our team."
SpaceX is financially healthy and has recently been valued at $ 30 billion (£ 23 billion). However, it has several expensive projects in the works ̵
The company also supplies supplies to the International Space Station (ISS).
Elon Musk, head of the company, believes it will cost 10 billion dollars (7.7 billion pounds) to develop a spaceship that could send people to Mars.
Another $ 10 billion (£ 7.7 billion) project called Starlink would create a constellation of satellites to provide affordable broadband internet service.
In November, the company obtained permission from US officials to put nearly 12,000 satellites in orbit.
SpaceX earns most of its money from multi-billion dollar contracts with NASA launches and satellites.
Redundant employees will be offered at least eight weeks "pay and other benefits, together with help in finding new jobs."