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Astra Space to cut 16% staff in ‘challenging’ environment

Astra Space Inc. is eliminating 16% of its workforce and redeploying some capital as the launch provider struggles with deteriorating business conditions.

Astra Space Inc. is eliminating 16% of its workforce and redeploying some capital as the launch provider struggles with deteriorating business conditions.

The company expects savings from the workforce reduction to materialize in early 2023, according to a statement Tuesday detailing its third-quarter results. Astra is also refocusing short-term investments in its Space Services business to support the growth of its Launch Services and Space Products businesses.

“Given the challenging macroeconomic environment, we have made the difficult but wise decision to reduce our operating expenses to support our primary objectives in the near term,” said Chris Kemp, co-founder and CEO of Astra, in the statement.

The move follows a major strategic shift in August, when Astra said it would stop work on its Rocket 3.3 system, designed to put small satellites into low Earth orbit. Only two flights of the rocket have successfully entered 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 missile system.

Astra on Tuesday reported an adjusted net loss of $45.2 million for the quarter and revenue of $2.8 million.

Shares were up 2.6% in volatile late trading New York at 4:55 p.m.

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