The company fires one of its Ripley rocket engines in Colorado.
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A few Colorado aerospace companies laid off workers over the past week to adjust to the new normal of a tight funding environment.
The layoffs fell at Ursa Major, which makes rocket engines, and Orbit Fab, a startup that aims to provide refueling services to spacecraft.
A person familiar with Ursa Major told CNBC that the company has laid off 27% of its employees, or about 80 people. An Ursa Major spokesperson confirmed to CNBC that the company has been restructured, but declined to specify the number of layoffs. In a statement, Ursa Major said the job cuts are “realigning our workforce to better meet the needs of our national security customers.”
“We want to recognize the contributions of every current and former Ursa Major professional. Their efforts and accomplishments cannot be overstated, and we deeply appreciate the advancements in space and hypersonic propulsion they have made possible,” said Ursa Major.
In LinkedIn posts, multiple former Ursa Major employees wrote that Wednesday was a “tough day” at the company, with “first class people” being laid off as part of the “major layoff.”
Adam Harris, Orbit Fab’s chief commercial officer, said in a statement to CNBC that 10 people were laid off this week and the company will have about 50 employees after the restructuring. It recently hired a new chief operating officer and plans to hire a chief engineer and others in the coming months.
“Our refined strategy will enable Orbit Fab to better meet the critical and growing demand for space refueling infrastructure for commercial and government markets and missions,” said Harris.
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After years of record funding levels in the space sector, the first quarter of 2023 saw the industry’s lowest investment period since 2015, according to Space Capital.
Ursa Major last raised money in October, with a $150 million round at a $550 million valuation, according to PitchBook. Based in Berthoud, Colorado and founded in 2015, the company had about 300 employees before the layoffs. The Ursa Major lineup of rocket engines has won orders from customers including the Air Force Research Laboratory, Stratolaunch and Astra.
Orbit Fab has been raising money more recently, with a $29 million round in April at a valuation of $113 million, per Pitchbook. Orbit Fab, based in Lafayette, Colorado and founded in 2018, aims to provide spacecraft refueling services beginning in 2025, after launching a demonstration flight in 2021. It has won early contracts from Space Force and the UK Space Agency.
TechCrunch first reported the layoffs to the Ursa Major.
