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

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.


US to extend license for its companies to continue business with Huawei

Updated 21 min 17 sec ago

US to extend license for its companies to continue business with Huawei

  • A longer extension is in the works but has not yet been finalized due to regulatory hurdles

WASHINGTON: The Trump administration is set to issue a two-week extension of a license allowing US companies to continue doing business with China’s Huawei Technologies, two sources familiar with the deliberations said.

The extension of around two weeks is far shorter than the prior 90-day extension and a longer extension is in the works but has not yet been finalized due to regulatory hurdles, said one source who was briefed on the matter.

After adding Huawei to an economic blacklist in May citing national security concerns, the US Commerce Department has allowed it to purchase some American-made goods in a move aimed at minimizing disruption for its customers, many of which operate networks in rural America.

The extension will be announced on Monday, when the earlier reprieve is set to expire, the sources said, declining to be identified as the extension has not been publicly announced.

A spokesman for Huawei, the world’s biggest maker of telecom network equipment, said the company does not comment on rumors and speculation. The Commerce Department declined to comment.

HIGHLIGHTS

  • US added Huawei to an economic blacklist in May citing national security concerns.
  • The Commerce Department is also considering whether to grant individual licenses for US firms to sell components to Huawei.

Commerce Secretary Wilbur Ross told Fox Business Network on Friday that some rural carriers need the temporary licenses and are dependent on Huawei for 3G and 4G networks.

“There are enough problems with telephone service in the rural communities — we don’t want to knock them out. So, one of the main purposes of the temporary general licenses is to let those rural guys continue to operate,” Ross said.

The development comes amid discussions between the US and China aimed at coming to an initial agreement to resolve a trade war that has lasted for over a year.

In blacklisting Huawei, the US government said it had a “reasonable basis to conclude that Huawei is engaged in activities that are contrary to US national security or foreign policy interests.” Huawei has repeatedly denied the accusations.

Attorney General William Barr said on Thursday Huawei and ZTE Corp. “cannot be trusted,” as he backed a proposal to bar US rural wireless carriers from tapping an $8.5 billion government fund to purchase equipment or services from them.

In May, President Donald Trump also signed an executive order declaring a national emergency and barring US companies from using telecommunications equipment made by companies posing a national security risk. The Commerce Department was due to draw up an enforcement plan by mid-October but has yet to publish one.

The Commerce Department is also considering whether to grant individual licenses for US firms to sell components to Huawei after receiving more than 200 requests.