Billionaire Sir Richard Branson’s Virgin Orbit satellite launch company has failed to secure new funding and as a consequence, approximately 85% of the workforce has been cut. This equates to roughly 675 members of staff, leaving a pared down business with around 100 remaining staff.
Virgin Orbit is a California-based company and the staff cuts were reported in a U.S. filing. Chief Executive Dan Hart is trying to secure additional funding, but the Financial Times has confirmed that all operations will cease indefinitely. Staff had already been furloughed earlier in March. It is understood Sir Richard Branson has promised to inject £9 million of personal money to help cover severance payments to help cover the anticipated £12 million overall costs of job cuts. The majority of the axed staff are expected to be let go by April 3.
“Those impacted are located in all areas of the company,” Virgin Orbit said. The good news is that the Virgin Group is looking to transition a number of employees to its sister company, Virgin Galactic, the tourist space flight enterprise. This latest investment by Sir Richard Branson takes his overall personal input into Virgin Orbit to £57 million during the last four months alone, having just injected £4 million a few weeks ago.
Virgin Orbit’s US-listed shares were down almost 50% in Friday’s pre-market trading, having already closed lower by 16%. The job cuts come two months after Virgin Orbit – which was founded by Branson and is 75% owned by Virgin Investments – failed in its mission to launch the first satellite from UK soil in January. The company said the botched launch, which was meant to be a historic moment for the UK, was the result of an “anomaly” that meant the rocket could not reach the required altitude and was later lost.
