Astra slashes 25% staff to cut costs, delays launch of new rocket: Report
The commercial launch provider has reduced about 25% of its workforce since the start of the current quarter, including 70 job cuts on Aug. 4.
Astra Space Inc. expects to delay the first test flights and launches of its next-generation rocket as it slashes its workforce to cut costs and prioritize other projects.
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The commercial launch provider has reduced about 25% of its workforce since the start of the current quarter, including 70 job cuts on Aug. 4, according to a statement Friday. The Alameda, California-based company said it also reallocated 50 engineering and manufacturing staff from the company’s launch services program to its initiative aimed at building spacecraft engines.
The developments mark fresh setbacks for Astra, which has experienced a string of delays and multiple launch failures. As recently as March, Astra said the future rocket was on track for its debut flight by the end of 2023.
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“We are intensely focused on delivering on our commitments to our customers,” Astra Chief Executive Officer Chris Kemp said in Friday’s statement.
In August 2022, Astra announced that it would no longer fly its Rocket 3.3 launch vehicle developed to launch small satellites. The vehicle had experienced multiple failures serving customers including NASA. Instead, the company decided to shift its focus to developing a larger launch vehicle known as Rocket 4.
Separately, Astra on Friday announced that it agreed to sell $12.5 million in senior secured notes and warrants for up to 22.5 million shares of the company’s shares.
