SpaceX to lay off 10 percent of workforce

In this file photo taken on July 22, 2018, SpaceX, Tesla and The Boring Company founder Elon Musk attends the 2018 SpaceX Hyperloop Pod Competition in Hawthorne, California. (AFP)
Updated 12 January 2019
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SpaceX to lay off 10 percent of workforce

  • The announcement came as SpaceX on Friday launched a Falcon 9 rocket from Vandenberg Air Force Base in California carrying 10 communications satellites

LOS ANGELES: SpaceX plans to lay off 10 percent of its more than 6,000 employees, a source familiar with the decision said on Friday.
“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 California-based company, headed by Elon Musk, said in a statement to AFP.
“Either of these developments, even when attempted separately, have bankrupted other organizations,” it added.
“This means we must part ways with some talented and hardworking members of our team.”
It added that the trim down was “only due to the extraordinarily difficult challenges ahead.”
Citing an email sent to employees on Friday, the Los Angeles Times said the company was offering those affected a minimum of eight weeks’ pay and other benefits, including career coaching and resume assistance.
The announcement came as SpaceX on Friday launched a Falcon 9 rocket from Vandenberg Air Force Base in California carrying 10 communications satellites.
Founded by Musk, SpaceX makes most of its money from multibillion dollar contracts with NASA and satellite launches.
SpaceX in November won authorization from US officials to put nearly 12,000 satellites into orbit in order to boost cheap, wireless Internet access by the 2020s.
The Wall Street Journal reported last month that the company was raising $500 million from investors to help launch its satellite Internet service.


Abu Dhabi aims to lure start-ups with investment in new technology hub

Updated 24 March 2019
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Abu Dhabi aims to lure start-ups with investment in new technology hub

  • The initiative will help Abu Dhabi reduce reliance on oil
  • Mubadala hopes to attract Chinese and Indian companies

ABU DHABI: Abu Dhabi will commit up to $272 million to support technology start-ups, it said on Sunday, in a dedicated hub as part of efforts to diversify its economy.

US tech giant Microsoft will be a strategic partner, providing technology and cloud services to the businesses that join the hub as the capital of the United Arab Emirates continues its push to reduce reliance on oil revenue.
Abu Dhabi derives about 50 percent of its real gross domestic product and about 90 percent of central government revenue from the hydrocarbon sector, according to ratings agency S&P.
The emirate launched a $13.6 billion stimulus fund, Ghadan 21, in September last year to accelerate economic growth. Ghadan means tomorrow in Arabic. The new initiative, named Hub 71, is linked to Ghadan will also involve the launch of a $136 million fund to invest in start-ups, said Ibrahim Ajami, head of Mubadala Ventures, the technology arm of Mubadala Investment Co.
The goal is to have 100 companies over the next three to five years, Ajami said. “The market opportunities in this region are immense,” he added.
Mubadala, with assets of $225 billion and a big investor in tech companies, will act as the driver of the hub, located in the emirate’s financial district.
Softbank will be active in the hub and support the expansion of companies in which it has invested, Ajami said, adding that Mubadala is also aiming to attract Chinese and Indian companies, among others.
Mubadala which has committed $15 billion to the Softbank Vision Fund, plans to launch a $400 million fund to invest in leading European technology companies.
Incentives mapped out by the government include housing, office space and health insurance as part of the $272 million commitment, Ajami said.
Abu Dhabi will also announce a new research and development initiative on Monday linked to the Ghadan 21 plan, according to an invitation sent to journalists.