Melbourne Startup Akula Tech Reduces Workforce by 70%

Akula Tech Faces Major Layoffs Despite Boon in Space Tech

In a surprising turn of events, Melbourne-based space and defense technology company Akula Tech has recently disclosed that it has laid off a staggering 70% of its workforce. This decision comes just a few months after the successful launch of its AI-powered satellite, a milestone that many anticipated would propel the company into a promising era.

A Shocking Downsizing

Founded in 2022 by Preetham Akula, Akula Tech saw its staff shrink from 13 employees—counting the founder—to a mere four, alongside one business development representative. This reduction signifies not just a challenge for the company, but also raises questions about the viability of startups in the evolving landscape of the space industry.

A spokesperson for Akula Tech confirmed that eight redundancies were made, citing two main factors for this drastic measure: a severe funding crunch and insufficient support from the Victorian government.

The Funding Drought

The spokesperson elaborated on the funding woes that plague the startup environment in Victoria, stating, “New South Wales and South Australia support [other spacetech startups] a lot more than what Victoria has been able to provide us with.” This lack of governmental backing appears to be a critical issue for Akula Tech, contributing significantly to the company’s current struggles.

Despite the applause received post-launch, the company lamented that the support ended there. Akula Tech’s spokesperson highlighted the gap in investment and resources as a pivotal reason for the layoffs, emphasizing the need for more significant governmental and financial support to thrive.

Conditional Redundancies

Interestingly, the layoffs were conducted as "conditional redundancies." The spokesperson clarified that if the company secures funding within the next two months, all laid-off employees would be reinstated. This form of redundancy indicates a glimmer of hope for the team and underlines the company’s commitment to its vision.

“It was a conditional redundancy we had to go through because of lack of funding,” the spokesperson noted. “If we’re able to do what we’re thinking of doing in the next couple of months, we will get everybody back.”

A Momentous Launch

It’s important to put Akula Tech’s current predicament into context. In August, the startup successfully launched Australia’s first AI-powered smart satellite, Nexus-01, aboard a SpaceX Falcon 9 rocket as part of the Launching Expeditions for Aspiring Payloads (LEAP) program. Described by Akula as “more than a satellite,” the launch was heralded as a pivotal moment for sovereign space intelligence.

At that time, Akula expressed ambition, highlighting the satellite’s advanced AI engine capable of analyzing complex data in real time. The launch not only marked a technical achievement but also served as a critical foundation for future endeavors.

Awards and Partnerships

Prior to these layoffs, Akula Tech enjoyed positive recognition within the space sector, winning the Business of the Year — SME category at the Australian Space Awards 2025. Additionally, they forged a partnership with UNSW Canberra to develop an advanced autonomous drone swarm system under the Defence Trailblazer’s Accelerating Sovereign Industrial Capabilities (ASIC) program. A spokesperson for UNSW reaffirmed their commitment to the partnership, indicating ongoing collaboration in spite of the turmoil within Akula Tech.

Job Market and Recruitment

The recent changes at Akula Tech paint a complex picture of the job market in the space tech sector. Just seven months ago, the company was hiring for two positions: a project manager and a finance intern, suggesting rapid growth potential. However, the swift transition to layoffs emphasizes the volatility and unpredictability that startups in the tech and space domains often face.

Future Prospects

As Akula Tech navigates this challenging landscape, the resilience of its vision will be tested. The company will not only need to secure funding but also efficiently leverage its existing partnerships and the innovative technologies it has developed to attract both investors and clients.

With a firm commitment to an ambitious future signaled by its recent milestones, all eyes will be on Akula Tech over the coming months to see how this story unfolds. The survival of such startups is often emblematic of broader trends within the technology sector, making Akula’s next steps critical not only for itself but for the industry at large.