Astra implements layoffs, increases debt, and changes direction to ensure survival

Astra implements layoffs, increases debt, and changes direction to ensure survival


An⁤ Astra Spacecraft Engine during testing.

Astra

Struggling space company⁢ Astra is cutting 25% of its workforce, the company announced Friday, and ⁢restructuring to focus‌ more on its spacecraft engine business, which will delay progress on the ‌small rocket ‌it has been developing.

Astra is cutting about 70 employees, as well as reallocating about 50 personnel from its rocket​ development program over to its space products unit, which builds the ⁢company’s⁢ spacecraft engines.

“We are intensely focused⁤ on delivering⁢ on our commitments to our customers,​ which includes ensuring we have sufficient resources‌ and an adequate financial runway to ⁣execute on our ‍near-term opportunities,” Astra chairman and CEO Chris Kemp said in a statement.

The workforce reductions are expected ⁤to result​ in $4 million in quarterly‍ cost savings, beginning⁤ in the fourth quarter. ​Astra noted that it had 278 total orders for spacecraft engines,⁣ as of four months ago, worth about $77 million⁣ in contracts. It expects‌ to…

2023-08-04 17:23:02
Link from www.cnbc.com

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