Richard Branson’s Virgin Orbit to lay off almost all employees due to lack of funds

Amid the news, the company’s shares lost more than 41%, falling to $0.19 after hours. The previous close of trading took place at $0.34 (minus 16%).

Hart told employees that the company “has no choice but to make immediate, dramatic and extremely painful changes.” The Virgin Orbit head said the layoffs will affect all teams and departments, leaving just 100 people.

According to documents filed with the US Securities and Exchange Commission (SEC), the layoffs at Virgin Orbit will affect 675 positions, or approximately 85% of the workforce.

Virgin Orbit is set to provide a severance package to each departing employee with cash, extended benefits and support in finding a new job through a “hotline” set up with Virgin Galactic for hiring.

• Virgin Orbit was spun off from Branson’s Virgin Galactic in 2017, and the billionaire remains its largest shareholder, with 75%. The second largest 18% part belongs to the UAE Mubadala Sovereign Wealth Fund.
• The company has been looking for funds for several months, Branson himself does not want to finance the company any more, notes CNBC.
• In the second decade of March, the aerospace company sent almost all employees on indefinite leave and almost completely suspended “operational activities” for at least a week. The company did so in the midst of financing problems.
• On March 28, Virgin Orbit shares fell 26% to a record low.
• Virgin Orbit is engaged in launching satellites into Earth orbit for commercial purposes. The company’s first launch in January 2023 ended in failure, after which Virgin Orbit’s shares collapsed 30%.