Astra Layoffs 2022: ASTR Stock Falls as Astra Space Cuts 16% of Staff
Source: Blue Planet Studio/Shutterstock
Astra Space (NASDAQ:ASTR) layoffs are in the news as the rocket company shifts focus away from its space services offerings.
This latest news has Astra Space announcing layoffs that affect 16% of its employees. The company doesn’t say how many this totals, but it employs over 400 people. That would suggest around 60 people will be laid off. However, it didn’t file Worker Adjustment and Retraining Notification (WARN) notice, which means it might be less.
With these newest layoffs, Astra Space is switching focus its focus toward electric thrusters as well as a new launch vehicle. With this change, the company won’t put as much effort into developing a constellation of communication satellites.
It’s worth noting that Astra Space has avoided laying off people for some time now. The newest layoffs announced by the space company are the first since it went public back in 2021, SpaceNews notes.
CEO’s Comments on ASTR’s Layoffs
Astra Space CEO Chris Kemp said the following about the layoffs to CNBC.
“Given the challenging macroeconomic environment, we made the difficult but prudent decision to reduce our operating expenses to support our primary near-term objectives.”
While trading is light today, ASTR investors aren’t reacting well to the layoff news. As of Wednesday afternoon, shares of the company’s stock are down 11.6%. Also, the ASTR stock is down 92.3% since the start of the year.
Investors looking for more recent stock market news will want to stick around!
We’ve got all of the biggest stock stories traders need to know about for Wednesday! A few examples include what’s happening with shares of Intel (NASDAQ:INTC), Meta (NASDAQ:META), and Redfin (NASDAQ:RDFN) stock today. You can find out more on these matters at the following links!
More Wednesday Stock Market News
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
