Virgin Orbit lays off 85% of staff after failing to secure funding
Virgin Orbit has announced that it will lay off 85% of its workforce and suspend operations for the foreseeable future due to its inability to secure new investment.
The rocket company was founded by British billionaire Sir Richard Branson and earlier this year the company had attempted to launch the first-ever satellite launch from UK soil. Whilst the mission was unsuccessful, it was billed as a milestone for UK space exploration and it was hoped it would mark a major step towards turning the UK into a global player – from manufacturing satellites to building rockets and creating new spaceports.
In a US regulatory filing, Virgin Orbit said it made the decision “in order to reduce expenses in light of the company’s inability to secure meaningful funding.”
The layoffs will affect approximately 675 employees.
Sir Richard’s investment firm, Virgin Investments, has provided $10.9m (£8.8m) to fund severance and other costs related to the workforce reduction.
The company’s shares fell more than 44% in after-hours trading after the announcement.
The company develops rockets to carry small satellites and is part of Sir Richard’s business empire, which includes airline Virgin Atlantic and space tourism company Virgin Galactic.