"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 spokesperson said in an email.
The company earns tens of millions of dollars per launch.
The firm announced that it would be parting ways with approximately 600 of its employees because of the "extraordinarily hard challenges ahead". SpaceX has since confirmed the news, saying in a statement that it must get "leaner" in order to achieve its goals - ones that, it said, "have bankrupted other organizations".
First reported by the Los Angeles Times, SpaceX's Gwynne Shotwell sent an email to employees about the downsizing saying it was a "difficult but necessary" decision. "This means we must part ways with some talented and hardworking members of our team", the company said.
This isn't the first time SpaceX has made job cuts.
NASA might still be waiting for its first real test of SpaceX's Crew Dragon spacecraft - which was recently pushed back into February for unspecified reasons - but that's not the only spacecraft SpaceX has been working on. The sackings were related to disagreements over the pace at which the team was developing and testing its Starlink satellites. SpaceX also in 2014 laid off a significant number of workers, with two former structural technicians later suing the company over claims that SpaceX violated labour laws by failing to properly notify them beforehand.
"Starship test flight rocket just finished assembly at the @SpaceX Texas launch site". The company also took on about $250 million in debt a year ago in its first loan sale, according to the Wall Street Journal.
Musk estimated in September that its new launch system would cost somwhere in the range of $2 to 10 billion.
Another $10bn (£7.7bn) project called Starlink would create a constellation of satellites to provide affordable broadband internet service.
However, there are more than 400 open positions in various fields at different SpaceX facilities, judging by the company's.