SpaceX fires at least 5 employees after CEO Elon Musk

SpaceX fires at least 5 employees after CEO Elon Musk criticized in internal letter

SpaceX CEO Elon Musk attends a post-launch press conference in the auditorium of the Press Site at NASA’s Kennedy Space Center in Florida May 30, 2020 following the launch of the agency’s SpaceX Demo-2 mission to the International Space Station.

NASA/Kim Shiflett

SpaceX has fired at least five employees involved in distributing a letter at the company criticizing CEO Elon Musk, two people familiar with the company told CNBC.

The open letter, first reported by The Verge, was circulated and signed by an unknown number of SpaceX employees earlier this week. The letter, according to media reports, was addressed to company executives and described the billionaire’s public behavior as a “common source of distraction and embarrassment” for SpaceX employees.

Musk is the controlling shareholder of the privately held company, with his trust owning about 78% of SpaceX’s voting stock as of last year. The CEO has created an often eccentric public figure, particularly on Twitter, where he offers comments and updates on SpaceX and its electric vehicle company, Tesla.

Musk has often said he uses Twitter to express himself, likening his use of the service to how “some people use their hair,” and is seeking to take over the social media company.

Musk said during a Twitter all-hands meeting on Thursday that freedom of expression is vital for the platform’s users — even when a company like SpaceX is privately held.

The internal SpaceX letter also referenced recent allegations of sexual misconduct against Musk, reported by Business Insider last month. According to the report, Musk allegedly sexually harassed a SpaceX flight attendant during a private flight and the company paid the employee $250,000 for her silence.

SpaceX President and COO Gwynne Shotwell defended Musk following the misconduct allegations, writing in an email to employees that she believes the allegations are “false.”

The New York Times first reported on the SpaceX launch. SpaceX did not immediately respond to CNBC’s request for comment.