As others pointed out in a previous post, the predicted market expansion for satellite launches has not really materialized yet despite SpaceX's low launch pric

As others pointed out in a previous post, the predicted market expansion for satellite launches has not really materialized yet despite SpaceX's low launch prices. Combined with most of their first stage boosters now being reused (multiple times), there's just less need for the assembly/fabrication type jobs required to build new Falcon rockets. Thus the layoff is just decreasing headcount to match their fabrication capacity to actual market demand.