Shortly after its first successful launch of the year, SpaceX has confirmed that a number of lay-offs will made at the company.

The lay-offs come as a result of financial fears according to a report from The Verge. As of time of writing it isn’t clear which divisions within SpaceX will be affected by the lay-offs.

“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,” the firm said in a statement.

“This means we must part ways with some talented and hardworking members of our team,” SpaceX continued.

Reports suggest that 6 000 people are employed by SpaceX and 10 percent of the total workforce will be laid off. The firm continues to reiterate in its statement that it would not be taking this action unless it was absolutely necessary.

The alternative, at least according to its statement is running the risk of bankruptcy. SpaceX has already taken out a loan for $250 million and may be raising an additional $500 million in equity.

SpaceX has lofty ambitions and while lay-offs aren’t good news we do understand why the firm has to become leaner.

The firm has a busy year ahead of it with testing of its Crew Dragon for flights to the International Space Station and testing of its Mars spacecraft among other things. As such it’s understandable why SpaceX wants to be financially sound.

The latest launch from the halls of SpaceX was also the last for its client Iridium. You can watch that launch in full below.

Brendyn Lotz writes news, reviews, and opinion pieces for Hypertext. His interests include SMEs, innovation on the African continent, cybersecurity, blockchain, games, geek culture and YouTube.