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Colorado space companies cut jobs due to funding crunch

By Nithya Bose in US business news, posted June 12, 2023

Two Colorado-based space companies have started layoffs in response to persistently tight funding.

Ursa Major, a renowned rocket engine manufacturer, and Orbit Fab, a start-up focused on providing refueling services for spacecraft, have been affected.

Sources said the company, which produces cutting-edge rocket engines, has let go approximately 27 percent of its workforce, amounting to roughly 80 people.

Although a company spokesperson confirmed the restructuring, they declined to reveal the exact number of cuts.

Ursa Major released a statement clarifying these job reductions are aimed at aligning their workforce to better meet the demands of their national security clients.

The company expressed gratitude for the contributions and accomplishments of both present and former employees.

It recognized their invaluable role in advancing space technology and hypersonic propulsion.

LinkedIn posts by multiple former Ursa Major employees conveyed the somber atmosphere at the company.

They referred to Wednesday, June 7, as a challenging day when numerous highly skilled workers was released as part of the major downsizing.

Meanwhile, Orbit Fab, focused on developing in-space refueling infrastructure for commercial and government markets, said 10 employees were let go during this period.

After restructuring, the company will maintain a workforce of approximately 50 people.

To support its refined strategy, Orbit Fab recently hired a new COO and plans to onboard a chief engineer and additional personnel in the coming months.

The company's Chief Commercial Officer, Adam Harris, said these changes would enable them to effectively cater to the escalating demand for in-space refueling services.

The space industry has witnessed record levels of funding over the years.

However, the first quarter of 2023 experienced the lowest investment activity since 2015, as reported by Space Capital.

Ursa Major, having last secured funding in October, raised $150 million at a valuation of $550 million.

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The company, headquartered in Berthoud, Colorado, and established in 2015, previously employed around 300 people before the layoffs.

On the other hand, Orbit Fab recently garnered $29 million in funding, valuing the company at $113 million during an investment round in April.

Based in Lafayette, Colorado, and founded in 2018, the company aims to offer spacecraft refueling services by 2025.

It has already conducted successful demonstration flights in 2019 and 2021, securing early contracts from the Space Force and the UK Space Agency.

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