Struggling space company Astra is carrying out layoffs of 70 jobs, or 15 percent of its workforce, as it shifts focus to its spacecraft engine business to remain afloat.
The restructuring would reallocate 50 employees from the rocket development program to the space products unit responsible for spacecraft engines.
Chris Kemp, Astra Chairman, and CEO, said: “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.”
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The layoffs are expected to save $4 million in quarterly costs starting in the fourth quarter.
Astra announced it had received 278 orders for spacecraft engines valued at approximately $77 million four months ago.
It expects fulfilling “a substantial majority” of these orders by the end of 2024.
In a separate filing, Astra revealed it raised $10.8 million by selling debt to investment group High Trail Capital.
The company’s stock remained relatively unchanged in after-hours trading following its close at 38 cents per share on Friday.
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Change of focus
Astra had shifted away from Rocket 3.3 sooner than planned after a failed mid-launch mission.
It is now focusing on the upgraded version, Rocket 4.0.
But the emphasis on the spacecraft engine business will affect the timing of future test launches.
This could impact its ability to conduct paid commercial launches in 2024 and beyond.
In its preliminary second-quarter results, it expects revenue of $1 million or less.
It also predicts a net loss between $13 million and $15 million.
Cash and securities should amount to approximately $26 million.
The finalized results are set to be reported on August 14.
Last month, Astra finalized plans for a 1-to-15 reverse stock split and sought to raise $65 million through an “at the market” offering of common stock.
The company has hired PJT Partners as a financial advisor to explore additional capital-raising opportunities thoughtfully.
