US space firm Astra cuts 25% of its workforce

San Francisco, Aug 5 (SocialNews.XYZ) Struggling space firm Astra has reduced its overall workforce by approximately 25 per cent, including a reduction of approximately 70 employees.

The affected employees primarily supported the company's launch, SG&A, and shared services functions.

Astra Space announced a strategic reallocation of its workforce from its Launch Services organisation to its Astra Spacecraft Engines business to support its growing customer base and order backlog of its spacecraft engines.

Astra last announced 278 cumulative committed orders of the Astra Spacecraft Engine, representing approximately $77 million of contract value.

In support of the Astra Spacecraft Engine business, Astra has reallocated approximately 50 engineering and manufacturing personnel from Launch Services to Space Products, it said in a statement.

"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," said Chris Kemp, Founder, Chairman and CEO.

According to preliminary second-quarter financial results, Astra is expected to have revenues between $0.5-$1 million, while having just $26-$26.5 million in cash on hand.

Astra, a rocket startup based in the US that went public in 2021, fired 16 per cent of its staff last year as part of a wider strategy to increase the shrinking financial runway and decrease expenses.

The company expected to conduct initial flight tests in late 2023.

Source: IANS