“Unfortunately, we have not been able to secure the funding to provide a clear path for this company. We have no choice but to implement immediate, dramatic, and extremely painful changes. This would be probably the hardest all-hands that we have ever done in my life” – Dan Hart, CEO of Virgin Orbit.
Yes, Richard Branson’s Virgin Orbit, an aircraft engineering company, has run out of money and new investors are not joining the party. Consequently, the company has fired most of its workers. The stock of the SPAC-company has moved into a deeper junk status.
Operations at Virgin Orbit, which were put on hold two weeks ago while the company sought a financial lifeline, are winding down in a more permanent way. CEO Dan Hart announced at an all-hands meeting Thursday that the rocket maker had been unable “to secure the funding to provide a clear path for this company” and would cease operations “for the foreseeable future,” CNBC reported, citing an audio recording of the meeting. Hart said that around 90% of the staff, or approximately 700 people, will be laid off, while about 100 employees will keep their jobs.
A Virgin Orbit rocket had suffered a mid-flight failure in January, crashing into the ocean and thrusting the company’s financial viability into question.
Virgin Orbit has furloughed most of its staff and put operations on hold for a week as it tries to secure more funding, CNBC reports, citing anonymous sources. The rocket-building firm told affected employees they would likely receive an update on the pause around the middle of next week; the furlough is said to be unpaid, though workers can use PTO. Virgin Orbit shares were already on a downward trajectory throughout 2022, but the company hit more trouble after its last mission failed in January.
Elon Musk. Elon Musk. Elon Musk – how many times have I called you? SpaceX is causing troubles for many space-focused companies right now. When there is a clear category-king, it is hard for investors to believe in anything else! Products win markets, and SpaceX has won this thing.
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Richard Branson-Owned Company Virgin Orbit Plans to Lay Off Nearly All of Its Workforce
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