Astra lays off 25% of workforce, mostly in its rocket departments
Astra revealed yesterday that it has laid off 25% of its workforce, with most of those jobs coming from those working of developing its rocket, in order to focus the company on its rocket engine business, the only area it at present has a chance of earning revenue.
The reallocation and layoffs are expected to delay testing of the under-development Rocket 4 and Launch System 2.0, Astra said. The affected employees worked in the company’s launch, sales and administration and “shared services” departments. Workforce reductions are expected to save the company more than $4 million per quarter beginning in the fourth quarter of this year.
Astra, which is facing dwindling cash reserves, is no doubt looking for a way to further reduce operating expenses while also bolstering its spacecraft engine business, the only business unit that currently has a near-term chance of generating revenue. The spacecraft engine technology is sourced from Astra’s acquisition of propulsion developer Apollo Fusion, which closed the day Astra went public in July 2021.
Indeed, Astra said that it had closed 278 committed orders of the Astra Spacecraft Engine product through the end of March, which totals around $77 million in contracts once the engines are delivered. A “substantial majority” of these orders will be delivered through the end of 2024, the company said.
What these actions mean is that Astra is no longer a rocket company. It might return eventually, but for now there is little chance it will resume launches for years.
It is interesting that this action was revealed only one day after a class-action lawsuit was dismissed by investors against the company for claiming that it would soon be launching 300 times per year.
Astra revealed yesterday that it has laid off 25% of its workforce, with most of those jobs coming from those working of developing its rocket, in order to focus the company on its rocket engine business, the only area it at present has a chance of earning revenue.
The reallocation and layoffs are expected to delay testing of the under-development Rocket 4 and Launch System 2.0, Astra said. The affected employees worked in the company’s launch, sales and administration and “shared services” departments. Workforce reductions are expected to save the company more than $4 million per quarter beginning in the fourth quarter of this year.
Astra, which is facing dwindling cash reserves, is no doubt looking for a way to further reduce operating expenses while also bolstering its spacecraft engine business, the only business unit that currently has a near-term chance of generating revenue. The spacecraft engine technology is sourced from Astra’s acquisition of propulsion developer Apollo Fusion, which closed the day Astra went public in July 2021.
Indeed, Astra said that it had closed 278 committed orders of the Astra Spacecraft Engine product through the end of March, which totals around $77 million in contracts once the engines are delivered. A “substantial majority” of these orders will be delivered through the end of 2024, the company said.
What these actions mean is that Astra is no longer a rocket company. It might return eventually, but for now there is little chance it will resume launches for years.
It is interesting that this action was revealed only one day after a class-action lawsuit was dismissed by investors against the company for claiming that it would soon be launching 300 times per year.