HAWTHORNE, Calif. (AP) - SpaceX says it will build test versions of its Mars spaceship in south Texas instead of the Port of Los Angeles, dealing another blow to the local economy only days after the company announced massive layoffs.

The Southern California-based company announced Wednesday that prototypes of its Starship spacecraft will be assembled at its Texas launch facility in a move to streamline operations.

However, development of the spaceship will continue at SpaceX headquarters in Hawthorne.

SpaceX won permission last year to build a giant new facility on leased port land, which could potentially have added hundreds of jobs to the region. SpaceX now won't proceed with that option.

Last week, SpaceX announced that it will lay off about 10 percent of its roughly 6,000 workers, mostly from its Hawthorne headquarters.

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