Richard Branson’s Company Ceases Operations. Virgin Orbit Fails to Secure Funding

Virgin Orbit, the company of British billionaire Richard Branson, has announced the layoff of up to 85 percent of its staff after failing to secure new investments.

According to media reports, the company will also cease operations in the near future, and this news comes weeks after it had already paused operations in an apparent attempt to strengthen its finances. Earlier this year, Virgin Orbit’s rocket failed to complete its first satellite launch from British soil.

The company’s shares fell by more than 44 percent in after-hours trading in New York on Thursday. In a U.S. regulatory filing, Virgin Orbit stated that it made this decision ‘to reduce costs in light of the company’s inability to secure significant funding.’

The layoffs will affect approximately 675 employees who are ‘located in all parts of the company.’ It was reported that Branson’s investment firm, Virgin Investments, invested $10.9 million in Virgin Orbit ‘to fund severance and other costs related to the workforce reduction.’

Virgin Orbit announced that it expects payments for laid-off staff and other costs to total around $15 million.

– We have no choice but to implement these immediate, dramatic, and extremely painful changes – said Virgin Orbit CEO Dan Hart at a meeting with employees, according to CNBC, which first reported the news.

The company, founded in 2017, has not operated profitably as a public company. Virgin Orbit develops rockets for carrying small satellites and is part of Richard Branson’s business empire, which includes the airline Virgin Atlantic and the space tourism company Virgin Galactic.

In January, Virgin Orbit attempted its first satellite mission launched from British soil, which ended in failure. The company’s LauncherOne rocket, launched from the Boeing 747 Cosmic Girl aircraft, reached space but did not reach its target orbit.

The mission was hailed as a milestone for space exploration in the UK. Many had hoped it would mark a significant step forward in fulfilling the ambition of turning the country into a global player – from satellite manufacturing to rocket building and creating new spaceports.

As things currently stand, the UK will not be among those players for some time.