"There are two other means by which SpaceX poses an imminent threat to Roscosmos. The first is the impact it is having on United Launch Alliance (ULA), the immediate U.S. competitor to SpaceX. ULA currently buys Russian-made engines for its Atlas V rocket, but SpaceX's success may cause it to rethink. Without sales to ULA, Roscosmos' engine-making subsidiary, Energomash, will lose its main customer. An even greater impact is expected when SpaceX begins flying NASA astronauts to the International Space Station in the next two to three years. Since the U.S. space shuttles were retired in 2011, Roscosmos charged NASA $70 million for each seat. Musk promises to undercut that significantly, charging around $20 million on his "Dragon" spacecraft. Considering that Roscosmos is expecting an annual budget of $2 billion over the next decade, the loss of an $500 million annual subsidy is significant."
"United Launch Alliance plans to cut up to 875 jobs, or about one-quarter of its workforce, before the end of 2017 to better compete against rivals bankrolled by billionaire entrepreneurs including Elon Musk and Jeff Bezos, ULA's chief executive said on Thursday. ULA, a partnership of Lockheed Martin Corp and Boeing Co, expects a first round of 375 job cuts to be accomplished this year, mostly through voluntary layoffs. In an interview with Reuters, ULA CEO Tory Bruno said another 400 to 500 employees would be cut by the end of 2017. "We're in the process of transforming our company," Bruno said."