Astra Restructures to Focus on Engine Business, Lays Off 70 Employees 

Panel in chamber unit in the Astra Spacecraft Engine. Photo: Astra

Astra Space recently laid off 70 employees and reallocated other employees from its launch business to its spacecraft engine team in a bid to manage expenses and put more resources toward its engine business. 

Astra debuted as a prospective smallsat launcher and was focused on developing smallsat launch capability, but the company hit roadblocks with mission failures. Last year, it suspended the rocket it was using to work toward the next launch system, originally targeting a test flight this year. 

The company is still working on the next rendition of its rocket, but in a Monday call with investors, CEO Chris Kemp said a test flight is now delayed until 2024. The test flight will determine if commercial launches will begin in 2024. 

Astra’s revenue now is supported by engine sales after the company acquired Apollo Fusion in 2021. The company shipped four engines during the second quarter and recognized revenue on three of the engines, reporting revenue of $707 million. 

In July, Astra separated the Astra Spacecraft Engine into a new legal entity, creating a distinct leadership team and dedicated employees. 

“This organizational change will enable Astra to evaluate strategic opportunities to efficiently finance each of our businesses, our spacecraft engine and launch businesses on both an individual and combined basis and provides Astra with increased flexibility as we evaluate strategic and capital markets opportunities,” Kemp told investors. 

Astra spent $24 million in R&D in the second quarter, and net loss was $14 million in the second quarter. At the end of June 2023, Astra had just $13.4 million of cash on hand, and cash, cash equivalents and marketable securities totaling $26.3 million. 

To manage expenses, Kemp said the layoffs will save $4 million per quarter, starting in the fourth quarter of this year. Astra also received a $12.5 million loan at the beginning of August.

CFO Axel Martinez addressed the company’s runway and strategy to move forward in the investor call. 

“Astra remains focused on deliveries to customers, prudent expense management, and executing on financing transactions to carefully manage our cash runway and cash burn,” Martinez said. “We continue to expect cash burn to decline throughout this year, with the initial steps of our financial roadmap announced in early August, including a reduction in our headcount and closing of a senior secured note facility.”