Matt Hartman / AP
SpaceX, the groundbreaking space technology company led by Elon Musk, will divert about 10 percent of its more than 6,000 employees.
The news was first reported by the Los Angeles Times.
In a statement, the company's spokesman confirmed the dismissal without indicating how many employees should be released.
"To continue delivering to our customers and successfully developing interplanetary spacecraft and a global space-based Internet, SpaceX must become a smoother company," the statement said. "That means we have to share ways with some talented and hard-working members of our team …. This action is only due to the extremely difficult challenges that come and will not otherwise be needed."
A business source says SpaceX remains financially strong and can continue to "manufacture and launch a reliable cadence in the coming years."
This year, the company also begins the "test shops" of Starship, a prototype for human travel to Mars, according to the source.