Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Virgin Orbit future in doubt as almost entire team laid off

Published 31/03/2023, 07:50
© Reuters Virgin Orbit future in doubt as almost entire team laid off
ORBT
-

Proactive Investors - Billionaire entrepreneur Richard Branson’s satellite-launching company Virgin Orbit Holdings Inc (NASDAQ:VORB) has announced an 85% workforce reduction after failing to secure funding

The news comes two weeks after the group announced a pause on operations in an attempt to shore up finances. Net losses in the most recent quarterly update exceeded US$43mln.

Virgin Orbit estimates that it will incur a further US$15mln (£12.1mln) in costs related to the reduction, comprising US$8.8mln in severance payments and employee benefits, US$6.5mln in “other costs primarily related to outplacement services”, according to SEC filings.

Workforce reductions are expected to be completed by April 3.

CNBC reported that Virgin Orbit chief executive Dan Hart told employees: "We have no choice but to implement immediate, dramatic and extremely painful changes."

Virgin Orbit has not turned a profit since being spun out of Branson’s Virgin Galactic space-tourism venture in 2017.

In January, the group’s LauncherOne satellite launcher failed in its attempt to conduct the first orbital launch from British soil in what Hart called a “painful” mission anomaly.

Approximately 675 employees will be let go in the restructuring.

Read more on Proactive Investors UK

Disclaimer

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.