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MiYaYo (Carol City)
SPACE NEWS:

Newer players in the space industry are running up against harsh business realities.

Several space-related companies have been shedding employees, finding other ways to reduce spending or have reined in their plans.

Planet Labs, which uses a fleet of satellites to capture images of Earth and sells data and analytics based on the enterprise, said Tuesday that it would cut 117 jobs, about 10% of its workforce.

The San Francisco-based company earlier this summer lowered its revenue forecast for its current fiscal year after bookings were lighter than expected, in part because customers were scrutinizing their spending, executives told investors. The layoffs aim to refocus Planet's operations and reinforce its push to generate profit.

"We need to focus and execute," said Will Marshall, chief executive at Planet Labs, in an email to employees the company posted online.

The space industry ranges from satellite operators that peddle internet connections to sprawling divisions of multibillion-dollar defense contractors that vie for contracts with the National Aeronautics and Space Administration. Two closely watched space companies, Elon Musk's SpaceX and Jeff Bezos' Blue Origin, are privately held. Both are in expansion mode, as they develop rockets and start new divisions.

Like other startups, a number of space-related companies in recent years tapped into an investor frenzy that allowed them to raise new capital by merging with so-called blank-check companies. Some space-industry executives have said the deals, which required less scrutiny than traditional initial public offerings, allowed their companies to obtain the capital they needed for growth.

Astra Space on Friday said it laid off around 70 employees, adding to previous reductions. It also said it reassigned other staffers from a group focused on rocket launches to support its spacecraft-engine business.

The company, which failed last year to complete two launches for NASA, estimated it had around $26 million in cash and securities on hand as of June 30, down from $201 million the year prior. Astra said Friday that it was looking at ways to raise more funds and that it had raised almost $11 million from an outside investor.

Satellogic, another Earth imagery and data business, began cutting 18% of its employees in the third quarter last year, citing changes in the global economy, according to a securities filing. It reduced head count by another 8% at the start of this year.

It once hoped to have 111 satellites operational by the end of this year but now won't meet that goal.

"There will be more pain ahead for many of these companies," according to Mike Collett, founder of Promus Ventures, which has invested in space-related companies.

Virgin Orbit, backed by billionaire Richard Branson, went public through a blank-check merger at the end of 2021. The company tried to build a business around using a modified 747 to ferry up a launch vehicle that separated from the plane and rocketed small satellites into orbit.

Before it listed, the company forecast $331 million in revenue this year, and said that would roughly triple in 2024.

Virgin Orbit struggled to compete with rivals, including SpaceX. A mission the company launched in January failed, and customer satellites were lost. In March, Virgin Orbit said it would lay off 675 people, or most of its workforce, and filed for bankruptcy shortly thereafter. It proceeded to liquidate its assets.

Rocket Lab USA, which also completed a listing in 2021, capitalized on the demise of its onetime competitor by taking over Virgin Orbit's former headquarters and factory in California. The company conducts launches and has a division that sells space systems, like a craft for satellites.

Last year, Rocket Lab generated $211 million in revenue, ahead of a pre-listing forecast. An executive at the company said at a recent investor event that getting to positive cash flow is highly dependent on Neutron, the larger new rocket it is developing.
 
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