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.


UAE’s Network International shrugs off Brexit to list shares in London

Updated 15 min 23 sec ago
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UAE’s Network International shrugs off Brexit to list shares in London

SEAN CRONIN DUBAI: Network International, the UAE payments processor, has committed to a London IPO next month in what would be the UK’s first big share sale of the year.
The company intends to have a free float of at least 25 percent and admission to the London Stock Exchange is expected to take place in April, Network International said in a regulatory filing on Thursday.
The planned share sale comes at an uncertain time in the UK where there is still no clarity around whether Britain will leave the EU or not at the end of the month.
VPS Healthcare, the Abu Dhabi-based hospital operator, is reconsidering plans to list in London due to uncertainty surrounding Brexit, Bloomberg reported on Thursday citing a person familiar with the matter.
The company, which operates hospitals in the Middle East, was said to be also considering listing in the US or Singapore.
Emirates NBD, Dubai’s biggest bank, owns 51 percent of Network International while Warburg Pincus and General Atlantic jointly own the rest.
The share sale will be a key test of investor demand for new listings in London after a subdued 2018 across most European markets.
“Volatility has continued in recent months, driven by the uncertainty around trade between the US and China, the wider geopolitical climate and the potential end of the current bull run,” said Peter Whelan, partner and UK IPO Lead at PwC in a recent report.
“We are seeing a healthy number of companies preparing for an IPO in 2019 despite the ongoing Brexit negotiations which have clearly impacted IPO activity on the London market.”
The payment processor reported earnings of $298 million last year according to its website, up from $262 million a year earlier. It does not disclose net income figures.
The company handles digital payments across the Middle East, which generate three quarters of its total earnings.
Last year it processed some $40 billion in payments for more than 65,000 merchants.
Its key markets in the region include the UAE and Jordan it says that Saudi Arabia offers “significant opportunities.” It also offers services in 40 African countries with Egypt, Nigeria and South Africa being its most important segments on the continent.