Space station startup cuts jobs despite funding

California-based space startup Vast has reduced its workforce by 46 employees, representing approximately 4% of its staff. This decision comes despite the company securing $500 million in funding and continuing to push forward with plans to construct a commercial alternative to the International Space Station. The layoffs occurred recently following a mid-year review cycle, according to a report in Business Insider.

A Vast spokesperson stated that the reductions were performance-based, but emphasized that the company is still actively expanding its workforce.

Vast currently has 277 open positions, indicating that the job cuts are not a part of a larger workforce reduction. However, two employees affected by the layoffs claim they were not informed about performance concerns during recent meetings with managers or performance evaluations.

The layoffs come at a critical time for Vast, which is in the midst of hiring for hundreds of new roles and preparing for the launch of its first space station, Haven-1, in 2027. The company aims to develop a larger modular station, Haven-2, which could accommodate up to 12 individuals and potentially serve as part of the commercial infrastructure once the International Space Station is retired.

Vast's founder, crypto billionaire Jed McCaleb, has been instrumental in securing the significant funding for the company. McCaleb's involvement in the cryptocurrency industry has provided Vast with substantial financial backing as it seeks to expand into space infrastructure. The company's vision extends beyond simply replacing the International Space Station, as it aims to develop rotating space stations with artificial gravity, a concept that could revolutionize human life and work in space.

The commercial space station race is intensifying as NASA prepares for the eventual retirement of the ISS in 2030. Multiple private companies are competing to develop orbital platforms for astronauts, research, and commercial activities. NASA's proposed strategy for the post-ISS era was withdrawn in June after receiving criticism from various stakeholders in the space industry.

For Vast, these recent layoffs highlight the challenges and uncertainties faced by companies attempting to establish a foothold in this rapidly evolving sector.