Layoffs hit Colorado space companies as funding remains tight

A brace of Colorado abstraction companies laid disconnected employees this past week, seeking to accommodate to the caller mean of a choky backing environment.

The layoffs came astatine Ursa Major, which makes rocket engines, and Orbit Fab, a startup aiming to supply refueling services to spacecraft.

A idiosyncratic acquainted with Ursa Major told CNBC that the institution fto spell of 27% of its employees, oregon astir 80 people. An Ursa Major spokesperson confirmed to CNBC that the institution restructured, but declined to specify the fig of layoffs made. In a statement, Ursa Major said the occupation reductions are "realigning our workforce to amended conscionable the needs of our nationalist information customers." 

"We bash privation to admit contributions of each existent and erstwhile Ursa Major professional. Their efforts and achievements cannot beryllium overstated, and we profoundly admit the advances successful abstraction and hypersonic propulsion they helped marque possible," Ursa Major said.

In LinkedIn posts, aggregate erstwhile Ursa Major employees wrote that Wednesday was a "rough day" astatine the company, with "top-notch people" fto spell arsenic portion of the "major layoff."

Orbit Fab's Chief Commercial Officer Adam Harris said successful a connection to CNBC that 10 radical were fto spell this week, and the institution volition person astir 50 employees aft the restructuring. It precocious hired a caller main operating officer, and plans to bring connected a main technologist and others successful the coming months.

"Our refined strategy volition alteration Orbit Fab to amended conscionable captious and increasing request for in-space refueling infrastructure for commercialized and authorities markets and missions," Harris said.

After years of grounds backing levels successful the abstraction sector, the archetypal 4th of 2023 saw the lowest play of concern successful the manufacture since 2015, according to Space Capital.

Ursa Major past raised wealth successful October, with a $150 cardinal circular astatine a $550 cardinal valuation, according to PitchBook. Based successful Berthoud, Colorado and founded successful 2015, the institution had astir 300 employees earlier the layoffs. Ursa Major's lineup of rocket engines person won orders from customers including the Air Force Research Laboratory, Stratolaunch, and Astra.

Orbit Fab raised funds much recently, with a $29 cardinal circular successful April astatine a $113 cardinal valuation, per Pitchbook. Based successful Lafayette, Colorado and founded successful 2018, Orbit Fab aims to connection spacecraft refueling services arsenic soon arsenic 2025, having launched a objection formation successful 2021. It has won aboriginal contracts from Space Force and the U.K. Space Agency.

TechCrunch archetypal reported the Ursa Major layoffs.