ABL Space Systems Implements Layoffs Amid Financial Challenges

ABL Space Systems, a promising space launch startup, has announced significant layoffs as it navigates financial difficulties. The company, based in El Segundo, California, has been forced to reduce its workforce in an effort to conserve resources and ensure long-term sustainability.

ABL Space Systems is an American aerospace and launch service provider, based in El Segundo, California, that manufactures deployable launch vehicles and infrastructure for sending commercial small satellites into orbit. The company manufactures its components in the United States.

ABL Space Systems manufactures the RS1, a two-stage orbital expendable launch vehicle, and GS0, a deployable launch pad. Harry O'Hanley is the chief executive officer (CEO) and Dan Piemont is the chief financial officer (CFO) of ABL Space Systems.

ABL Space Systems was founded in 2017 by Harry O'Hanley and Dan Piemont, former SpaceX and Morgan Stanley employees. Their RS-1 rocket has two stages. It offers a maximum capacity of 1,350 kg (2,980 lb) to low Earth orbit (LEO)

CEO Harry O'Hanley said "Yesterday, we announced to our team that we will be doing a reduction in size. This means that many fantastic individuals are leaving ABL and the organizations they end up at will be very lucky to have them.

"It was a difficult decision, and I hope to provide as much clarity and transparency as I can to both our team and the broader community. We held a brief All Hands to break the news and below is the message that I shared with our team following it. It’s a tough day for many at our company and please help us in lending support.

"“In 2021, the space industry – along with nearly every industry – was a red-hot market. We faced significant pressure to scale and capital was available to support it,” O’Hanley wrote. The company had originally planned to be a lean organization, “but to remain competitive we built a large organization capable of producing rockets at a high rate while we continued to tackle the challenges associated with launch vehicle development.”

Hanley added that, starting in 2023, “we cut costs and positioned the company for leaner operations with smaller teams, restrained hiring, and more conservative spending. Through these efforts, we were able to get onto a good glidepath, but the recent staticfire issue knocked us from it.”

He concluded “In 6.5 years, you designed a launch vehicle from scratch and got two rockets onto the pad. Few other teams have done that, let alone take on the scope that you did. Be proud of this work because nothing can ever strip these accomplishments from you.”

While the exact number of job cuts has not been disclosed, sources within the company indicate that the layoffs are substantial. ABL Space Systems has been grappling with challenges in recent months, including delays in its launch schedule and increasing competition in the space launch market.

Despite the layoffs, ABL Space Systems remains committed to its mission of providing affordable and reliable access to space. The company is actively exploring strategic partnerships and seeking additional funding to overcome its financial hurdles and continue its operations.

The layoffs at ABL Space Systems highlight the competitive nature of the space industry and the challenges faced by startups in this rapidly evolving sector. As the industry continues to mature, companies must adapt to changing market conditions and prioritize financial stability to remain viable.