Virgin Orbit, a satellite launching company run by billionaire Richard Branson, may cease to exist in the near future. This was announced at a general meeting of the company’s employees by its CEO Dan Hart, writes CNBC.
In addition, the company has filed statement to the US Securities and Exchange Commission, from which it follows that almost all employees will leave Virgin Orbit. The company fires 675 people at once – this is 85% of their total number. After that, about 100 employees will remain in the state. To everyone who falls under the reduction, the company promised to help with employment and pay severance pay. Resignations will be issued by April 3rd.
Virgin Orbit has been in serious financial trouble in recent months. In many ways, this was facilitated by the unsuccessful launch of the LauncherOne carrier rocket in January of this year, which was supposed to be the first ever launch of space satellites from the UK. Already on March 15, the company announced a temporary suspension of its activities and sent all employees on unpaid leave. On March 23, the company resumed work, but only a part of the employees sent on vacation returned to their jobs.
All this time, Virgin Orbit was desperately trying to find investors to continue its activities. However, as CEO Dan Hart explained at the meeting, it was not possible to find investors for the company.
After this news, shares of Virgin Orbit almost depreciated. In over-the-counter trading, they are listed 44% below Thursday’s close and are worth just $0.19 each. Shares have fallen 81.6% since the beginning of the year.
