In an unprecedented move, both Planet and Astra, two leading private space exploration companies, have announced layoffs and a retirement for their flagship rocket, Max Q. It marks a major setback for the highly competitive space exploration industry.
The layoffs of 393 Planet and Astra employees came after purported financial losses from the unsuccessful launch of the Max Q rocket in February of this year. The rocket, originally designed to bring commercial payloads to space, was destroyed shortly after takeoff following an unexplained malfunction in its propulsion system.
The malfunction of the Max Q is now seen as a major disruption to the short-term plans of both Planet and Astra. Many had hoped that the launch of a private space exploration rocket capable of carrying commercial payloads would bring significant revenue and acclaim to Planet and Astra.
The Max Q failure is not the only factor in the layoffs at Planet and Astra, however. The competitive private space exploration industry has been highly volatile in recent years. With new players entering the industry with seismic funding, many smaller companies, including Planet and Astra, have been forced to scale back their operations in order to remain competitive.
The setback suffered by Planet and Astra should also be seen in the context of a painful year for the global space exploration industry overall. The COVID-19 pandemic has had a major impact on the industry, bringing about delays in launches and cuts to various new projects.
In the face of the current economic downturn and the industry’s shifting competitive landscape, Planet and Astra have both made the difficult decision to retire their Max Q rocket and cut personnel. This has left many of the affected Planet and Astra employees in financial peril, pushing them to explore new professional opportunities.
Still, Planet and Astra remain optimistic about the future of their private space exploration operations. Both companies are now looking to other opportunities to reposition their operations and continue to serve the commercial needs of their customers in the space exploration industry.
It’s another reminder of the often uncertain state of the private space exploration industry, where a single failure can have major implications on the future of a company. The retirement of the Max Q and subsequent layoffs at Planet and Astra are a stark example of this.