Planet, the satellite imagery company that went public in December 2021 through a special purpose acquisition company (SPAC), has decided to lay off 117 employees, constituting approximately 10% of its workforce. The move is aimed at focusing on driving revenue amid challenges posed by an ongoing downturn in the public markets.
In a blog note, CEO Will Marshall cited a comprehensive assessment of the business and spending as the basis for the decision to reduce staff. While the company has experienced rapid scaling and consistent revenue growth, the expansion of projects has led to increased costs and complexity, impacting operational efficiency in some areas.
Planet aims to prioritize its attention on initiatives that offer the highest return on investment (ROI) while reinforcing its path to profitability. The company has been notable for its strong performance in the space sector, reporting growing revenues that align with the upper end of its projections. However, elevated operating costs have prevented the company from achieving profitability thus far.
Marshall assumed responsibility for the decisions leading to the workforce reduction, acknowledging the significant effects this move will have on the impacted employees and their families. He expressed regret for the situation and emphasized that the decision was not taken lightly.
Upon going public, Planet’s stock closed at $11.35 a share, but it has faced challenges in the public markets, with its stock closing at $3.75 a share recently. Despite this, the company remains committed to its growth and profitability objectives and aims to navigate the challenges in the space industry to secure a sustainable future.