Virgin Orbit Closes Up Shop, Lays Off Majority of Workforce
Virgin Orbit is out of money and will suspend operations and lay off most employees.
"Unfortunately, we've not been able to secure the funding to provide a clear path for this company," CEO Dan Hart told employees during a Thursday meeting, audio(Opens in a new window) of which was obtained by CNBC. "We have no choice but to implement immediate, dramatic, and extremely painful changes."
A spin-off of Richard Branson's Virgin Galactic space tourism venture, Virgin Orbit has achieved various successes (and a few failures) with its LauncherOne rocket, which has deployed CubeSats into Low Earth Orbit and delivered a commercial payload to space. However, a recent attempt—its first from the UK—ended abruptly due to "an anomaly" with the upper stage.
In a Thursday securities filing(Opens in a new window), Virgin Orbit revealed plans to axe some 675 employees, or about 85% of the workforce. Hart, meanwhile, tipped a slightly larger 90% across the organization, leaving all but 100 positions.
Virgin Orbit initially paused operations and furloughed most staffers on March 15 while it worked to secure enough funding to move forward, but a $200 million investment from venture capitalist Matthew Brown fell through, Space.com reports(Opens in a new window).
"This company, this team—all of you—mean a hell of a lot to me," Hart told employees. "And I have not, and will not, stop supporting you, whether you're here on the journey or if you're elsewhere."
Virgin Orbit will provide a severance package "for every departing" worker, CNBC says. That includes a cash payment, extension of benefits, and support in finding a new position—with the possibility of moving to sister company Virgin Galactic.
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