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Satellogic Announce Another Round of Layoffs

Credit: Satellogic

Ibadan, 18 June 2024. – Satellogic has announced another round of layoffs with an additional workforce reduction of approximately 70 Full-time Time Equivalents. This comes after the imaging Company announced a workforce reduction in May 2024 of 34 employees, which constituted approximately 13% of its employee base. This workforce reduction comes as a part of the Company’s previously announced and ongoing efforts to reduce operating costs and control spending

With the layoffs, the Company expects the reduction to result in approximately $4.1 million in annual savings and to incur approximately $1.2 million in associated severance-related charges. Additionally, the Company expects to reduce non-salary operating expenses by roughly $3.0 million annually and to moderate capital expenditures to pace investment with revenue and customer growth. Cumulatively, Satellogic expects the impact of the workforce reduction in May and June 2024 operating expense savings to result in approximately $9.6 million of annual savings.  However, the Company will potentially incur roughly $2.0 million in cumulative severance-related charges.

Commenting on the development CEO, Emiliano Kargieman, said, “As we continue to evaluate all strategic options going forward, we are redoubling our efforts to put Satellogic on a path towards profitability. This includes continuing revenue and customer growth efforts and closely evaluating our cost structure. Now that our Mark V satellites are operational, we are reducing our constellation growth and corresponding capital expenditures, allowing us to make some necessary adjustments, including workforce reductions, to ensure we are operating efficiently and are well-positioned for future success.”

The CEO also added, “We remain committed to transparent communication related to our strategy and operating results, and to achieving our long-term goals for the benefit of all stakeholders.” The Company recently deployed and operationalized its new Mark V satellites. and expects to reduce investment into its constellation growth initiatives going forward.

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