Virgin Orbit is on the brink of collapse just months after a failed attempt to launch a satellite into space from Cornwall
Virgin Orbit is on the brink of collapse just months after a failed attempt to launch a satellite into space from Cornwall.
The missile company founded by Sir Richard Branson has laid off 85 percent of its workforce and ceased operations after failing to secure a cash lifeline.
Virgin Orbit said it had made the decision “to reduce costs in light of the company’s inability to secure meaningful financing.” About 675 employees will be affected by the cuts and only 100 will remain.
Failure: Cosmic Girl and Launcher One. Right: Richard Branson
Branson, through his company Virgin Investments, has injected approximately £8.8 million to cover most of the severance pay and other costs associated with the cull. Founded in 2017, Virgin Orbit has not made a profit since becoming a publicly traded company.
Reports suggest that the company will cease operations for the foreseeable future until it gets its finances in order.
The New York-listed company was on the verge of bankruptcy after its botched launch from Cornwall in January. The Virgin Orbit aircraft – a reconfigured Boeing 747 named Cosmic Girl – took off from Newquay with Launcher One under its wing. But a glitch prevented the rocket carrying the satellites from reaching orbit after launching from the plane.
William Whitehorn, the former president of Virgin Galatic, which gave birth to Virgin Orbit, said: “Space technology is currently suffering from a much bigger problem in the technology sector and wider private equity fears.”