"Either of these developments, even when attempted separately, have bankrupted other organizations", a spokesman said in an email.
"This means we must part ways with some talented and hardworking members of our team", the statement continued.
The company said it will "part ways" with some of its manpower, citing "extraordinarily hard challenges ahead".
Word of the reductions came just hours after SpaceX executed its first Falcon 9 rocket launch of the year, putting 10 Iridium NEXT satellites into low Earth orbit, and a day after Musk hailed the assembly of a subscale test prototype for SpaceX's interplanetary Starship spacecraft.
The layoffs, a company source said, don't indicate near-term financial problems at the company but rather a redistribution of resources to focus on development of its next-generation launch system and broadband constellation.
This year, the company plans to begin Starship test flights and to launch the first Starlink satellites.
According to The Wall Street Journal, the company planned to raise $500 million in funding, pushing its value to $30.5 billion.
Another Musk-funded company, Tesla, announced a "difficult, but necessary" reorganization in June. The Washington Post reported the review was ordered, in part, because of concerns raised in the wake of a podcast in which Musk apparently smoked marijuana.
About 600 of the firm's 6,000-strong workforce are being laid off, with the company blaming "extraordinary hard challenges ahead" for its decision.
Formerly known as the Big Falcon Rocket, SpaceX's super heavy-lift vehicle looks to be ready for blast off.
Elon Musk's Space X company is financially healthy and was recently valued at almost U.S. $30 billion.
SpaceX makes most of its money from multibillion-dollar contracts with NASA and satellite launches.