Re: the slew of pink slips issued to Space X employees recently
SpaceX is large company. They need to clear out the deadwood from time to time. Note they are hiring new people at the same time.
Also, some of those let go would have been working in carbon fibre, which is less needed now they are switching to stainless steel. There are a host of other factors too. The whole point of reuse is that you need less labour.
SpaceX haven't had many DoD contracts. They get government money from NASA, and nowadays most of their business is commercial.