Space company Astra dismissed 25% of employees due to financial problems

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Summarize this content to 100 words US space company Astra has laid off 25% of its workforce since the start of the quarter and transferred 50 engineers and production staff to other departments due to financial problems. The redeployment and layoffs will delay testing of the Rocket 4 rocket and Launch System 2.0, which are under development, a company representative acknowledged.Astra also estimates that mass layoffs will save more than $4 million per quarter starting in the fourth quarter of 2023.According to TechCrunch, Astra is looking for a way to further reduce operating costs while also supporting its spacecraft engine business. This is the only division that has a chance of making a profit in the near future.Astra closed 278 confirmed orders for its Astra Spacecraft Engine by the end of March. The representative assured that most of these orders will be fulfilled and delivered by the end of 2024.Astra has also hired investment bank PJT Partners as a financial adviser as it seeks additional capital to continue operations. The company raised $10.8 million as a result of the sale of debt to the investment group High Trail Capital.According to preliminary financial results for the second quarter, Astra’s turnover is expected to be between $40.5 million and $1 million.Astra already laid off 16% of its employees in November last year. The company has reduced investments in the direction of creating a satellite group designed to provide communication services.

Space company Astra dismissed 25% of employees due to financial problems

US space company Astra has laid off 25% of its workforce since the start of the quarter and transferred 50 engineers and production staff to other departments due to financial problems.

The redeployment and layoffs will delay testing of the Rocket 4 rocket and Launch System 2.0, which are under development, a company representative acknowledged.

Astra also estimates that mass layoffs will save more than $4 million per quarter starting in the fourth quarter of 2023.

According to TechCrunch, Astra is looking for a way to further reduce operating costs while also supporting its spacecraft engine business. This is the only division that has a chance of making a profit in the near future.

Astra closed 278 confirmed orders for its Astra Spacecraft Engine by the end of March. The representative assured that most of these orders will be fulfilled and delivered by the end of 2024.

Astra has also hired investment bank PJT Partners as a financial adviser as it seeks additional capital to continue operations. The company raised $10.8 million as a result of the sale of debt to the investment group High Trail Capital.

According to preliminary financial results for the second quarter, Astra’s turnover is expected to be between $40.5 million and $1 million.

Astra already laid off 16% of its employees in November last year. The company has reduced investments in the direction of creating a satellite group designed to provide communication services.

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