Virgin Orbit, the rocket company owned by Richard Branson’s Virgin Group, has announced that it will be laying off over 85% of its workforce and ceasing operations “for the foreseeable future”. The announcement comes as a result of the company's failure in securing funding which led to its inability to continue its space launch operations. The layoffs are expected to affect nearly 90% of all job roles with only 100 positions remaining.
The decision by Virgin Orbit follows months of uncertainty after a failed launch attempt earlier this year. In January, the company attempted a rocket launch from Spaceport Cornwall in Newquay as part of UK's plan for space exploration but was unsuccessful due to a dislodged fuel filter. Investigations into the incident have been ongoing since then.
Sir Richard Branson had injected £11m into Virgin Orbit recently in an effort to keep it running. However, he has now stated that his investment will mostly cover severance payments for laid-off staff members.
Virgin Orbit was launched via four successful launches and had secured debt financing through investments from Branson’s Virgin Group in November, December, and February respectively. Its stock market valuation dropped significantly from $3.7 billion when it went public in January 2021.
According to regulatory filings with the US Securities and Exchange Commission (SEC), all operations at Virgin Orbit will cease immediately while layoffs across every department will take place until April 3rd at an estimated cost of $15 million which includes severance payments and other costs related to winding down business operations.
This is a developing story that is being monitored closely by industry experts with further updates expected soon.