Astra Space to Cut 16% of Staff on ‘Challenging’ Environment

Astra Space Inc. is eliminating 16% of its workforce and reallocating some capital as the launch provider grapples with worsening business conditions.

The company expects savings from the headcount reduction to be realized beginning in early 2023, according to a statement Tuesday that detailed third-quarter results. Astra is also redirecting near-term investments in its Space Services business to support growth of the Launch Services and Space Products operations.

“Given the challenging macroeconomic environment, we made the difficult but prudent decision to reduce our operating expenses to support our primary near-term objectives,” Chris Kemp, Astra’s co-founder and chief executive officer, said in the statement.

The move follows a significant strategic shift in August, when Astra said it would cease work on its Rocket 3.3 system, designed to deliver small satellites into low-Earth orbit. Only two flights of the rocket successfully made it to orbit, while the vehicle has suffered multiple in-flight anomalies on other missions while carrying payloads for NASA. Astra decided to focus on developing a new rocket system.

Astra on Tuesday reported an adjusted net loss of $45.2 million in the past quarter and sales of $2.8 million.

The shares rose 2.6% as of 4:55 p.m. in volatile late trading in New York.

Astra Space Inc. is eliminating 16% of its workforce and reallocating some capital as the launch provider grapples with worsening business conditions.

The company expects savings from the headcount reduction to be realized beginning in early 2023, according to a statement Tuesday that detailed third-quarter results. Astra is also redirecting near-term investments in its Space Services business to support growth of the Launch Services and Space Products operations.

“Given the challenging macroeconomic environment, we made the difficult but prudent decision to reduce our operating expenses to support our primary near-term objectives,” Chris Kemp, Astra’s co-founder and chief executive officer, said in the statement.

The move follows a significant strategic shift in August, when Astra said it would cease work on its Rocket 3.3 system, designed to deliver small satellites into low-Earth orbit. Only two flights of the rocket successfully made it to orbit, while the vehicle has suffered multiple in-flight anomalies on other missions while carrying payloads for NASA. Astra decided to focus on developing a new rocket system.

Astra on Tuesday reported an adjusted net loss of $45.2 million in the past quarter and sales of $2.8 million.

The shares rose 2.6% as of 4:55 p.m. in volatile late trading in New York.