SpaceX will lay off 10 percent of its workforce, which is about 600 employees, according to a company spokesperson on Friday.
Some employees of the McGregor test facility were instructed to go home at 4 p.m. Friday and not to return, KWTX has learned.
The company cited global space-based Internet and developing interplanetary spacecraft as projects that necessitate the layoff.
Others said the sleek design and prominent fins closely resemble spaceships depicted in 1950s/60s films, Wallace and Gromit and even Toy Story. "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", the company said.More news: James Middleton is speaking openly about his battle with depression
The firm announced that it would be parting ways with approximately 600 of its employees because of the "extraordinarily hard challenges ahead".
In an email written by President Gwynne Shotwell obtained by The LA Times, employees were informed of the cuts and told "this was a very hard but necessary decision".
This comes after SpaceX saw a record-breaking 2018 with 21 orbital launches.
SpaceX makes most of its money from multibillion-dollar contracts with NASA and satellite launches.
In 2019, SpaceX plans to continue its high launch rate, in addition to finishing the development of its Crew Dragon spacecraft.More news: De Minaur Downs Seppi For Maiden Title In Sydney
Last summer, the company fired some senior managers at the company's Redmond, Washington, office, because of disagreements over the pacing of the development and testing of its Starlink satellite programme.
Back in September, Musk revealed the new design of the Big Falcon Rocket, now simply called Starship, and confessed he wanted to emulate the design of the comic book rocket. In addition, SpaceX plans its first deployment of its Starlink satellites this year, which will be the key infrastructure for its space-based Internet project.
Assuming that the company now employs more than 6,000 people, a 10 percent cut would amount to 600 jobs.More news: Samsung’s foldable phone could launch alongside the Galaxy S10