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SpaceX, the pioneering space technology company led by Elon Musk, will lay off about 10 percent of its more than 6,000 employees.
The news was first reported by the Los Angeles Times.
In a statement, a company spokesman confirmed the layoff without specifying how many employees will be released.
"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," said the statement. "This means we must part ways with some talented and hardworking members of our team. ... This action is taken only due to the extraordinarily difficult challenges ahead and would not otherwise be necessary."
A company source says SpaceX remains financially strong and can continue to "manufacture and launch at a reliable cadence in the years ahead."
This year the company also will begin "test hops" of Starship, a prototype designed for human travel to Mars, according to the source.
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