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Capitalism in space: Surrey Satellite Technology, one of the first companies to build smallsats and cubesats, is closing its U.S. factory in Colorado and concentrating its satellite work once again in the UK.
It appears the company might have gotten a little fat and lazy, and has allowed the competition to begin passing it by:
Parker said the exact number of people SST-US will let go has not been determined. SSTL’s decision to layoff workers in the U.S. is not related to the decline in geostationary telecommunications satellite orders that triggered a reduction in workers at Space Systems Loral, Parker said. The majority of SSTL’s business is in remote sensing, navigation and science — spacecraft typically found in non-geosynchronous orbits.
Instead, Parker said it was more out of concern that the smallsat movement the company had championed for years had picked up steam and was moving without SSTL. “We had grown slightly fatter, slightly more complacent, so we are doing a lot of work on our organization. We started last year and changed our organizational structure internally. We changed the way our teams are organized so we now have a much flatter structure with more autonomy,” she said.
SSTL is not reducing its headcount in the U.K., Parker said.
This kind of reminds me of ULA’s recent effort to streamline its operations, faced with competition from SpaceX. Here, Surrey is finding itself getting beat by a lot of new players, and had found it needs to reshape itself to survive.