9 January 2019, 05:06 GMT
SpaceX will offer affected employees a minimum of eight weeks pay and other benefits, the Los Angeles Times reported on Friday citing a person familiar with the matter.
The company in a statement to the Times said the decision was necessary because to deliver for its customer it had to become a leaner operation.
READ MORE: Elon Musk Unveils SpaceX Starship Test Vehicle (VIDEO)
SpaceX earlier this month raised $273 million through preferred stock, CNBC reported on Friday, citing a filing with the US Securities and Exchange Commission.
