Layoffs hit Colorado house firms as funding stays tight

A pair of Colorado house firms laid off staff this previous week, searching for to adapt to the brand new regular of a good funding atmosphere.

The layoffs got here at Ursa Main, which makes rocket engines, and Orbit Fab, a startup aiming to offer refueling companies to spacecraft.

An individual acquainted with Ursa Main instructed CNBC the corporate let go of 27% of its staff, or about 80 folks. An Ursa Main spokesperson confirmed to CNBC the corporate restructured however declined to specify the variety of layoffs made. In a press release, Ursa Main stated the job reductions are “realigning our workforce to higher meet the wants of our nationwide safety clients.” 

“We do wish to acknowledge contributions of each present and former Ursa Main skilled. Their efforts and achievements can’t be overstated, and we deeply respect the advances in house and hypersonic propulsion they helped make attainable,” Ursa Main stated.

In LinkedIn posts, a number of former Ursa Main staff wrote Wednesday was a “tough day” on the firm, with “top-notch folks” let go as a part of the “main layoff.”

Orbit Fab’s Chief Industrial Officer Adam Harris stated in a press release to CNBC 10 folks have been let go this week, and the corporate can have about 50 staff after the restructuring. It just lately employed a brand new chief working officer and plans to deliver on a chief engineer and others within the coming months.

“Our refined technique will allow Orbit Fab to higher meet crucial and rising demand for in-space refueling infrastructure for industrial and authorities markets and missions,” Harris stated.

After years of document funding ranges within the house sector, the primary quarter of 2023 noticed the bottom interval of funding within the trade since 2015, in keeping with House Capital.

Ursa Main final raised cash in October, with a $150 million spherical at a $550 million valuation, in keeping with PitchBook. Primarily based in Berthoud, Colorado, and based in 2015, the corporate had about 300 staff earlier than the layoffs. Ursa Main’s lineup of rocket engines has received orders from clients together with the Air Power Analysis Laboratory, Stratolaunch and Astra.

Orbit Fab raised funds extra just lately, with a $29 million spherical in April at a $113 million valuation, per Pitchbook. Primarily based in Lafayette, Colorado, and based in 2018, Orbit Fab goals to supply spacecraft refueling companies as quickly as 2025, having launched demonstration flights in 2019 and 2021. It has received early contracts from House Power and the U.Okay. House Company.

TechCrunch first reported the Ursa Main layoffs.