Virgin Orbit, the satellite-launching subsidiary of Richard Branson’s Virgin Group, has announced that it will lay off 85 percent of its workforce and is ceasing operations “for the foreseeable future". The company failed to secure a funding lifeline after wrapping up its investigation into the mid-flight failure of its launch earlier this year. In January, a Virgin Orbit jumbo jet took off from Spaceport Cornwall in Newquay carrying a rocket under a wing. After flying to 35,000ft over the Atlantic Ocean, the plane jettisoned the rocket before returning safely. Later investigation revealed that a dislodged fuel filter may have caused the failure.
The layoffs are expected to be completed by April 3rd leaving just 100 employees remaining at the company. Sir Richard Branson has injected £11m into Virgin Orbit with his cash injection expected to cover most of the severance payments. The company will pay approximately $15 million in severance payments and other costs related to winding down business.
Virgin Orbit was put in space via four successful launches and small tranches of funding brought in as debt via an investment arm of Branson’s Virgin Group in November, December and February respectively but had not turned an operating profit yet.
This news comes two months after its most recent mission failed due to dislodged fuel filter causing collapse on share prices leading up until March where stock market valuation dropped significantly from $3.7 billion when it went public earlier this year.
Chief executive Dan Hart is making last ditch efforts to secure rescue deal for troubled rocket launch company but no further details have been released at this time.
This is a developing story.