The Virgin Orbit aerospace company has cut 85% of its workforce, writes The Guardian on March 31.
The satellite launch company, founded by billionaire Sir Richard Branson, explained the decision by its inability to attract investment.
The California-based company said about 675 employees will lose their jobs as part of the cost cuts, leaving about 100 employees to run what’s left of the business. This happened because “failure to secure significant funding”explained in the statement.
According to the Financial Times, CEO Dan Hart is making a last-ditch effort to secure a deal with financial investors, but told employees on Thursday the company would suspend operations indefinitely.
Earlier this month, Virgin Orbit had already suspended operations and placed employees on furlough in an attempt to secure funding.
Branson has reportedly pledged nearly $11m (£9m) to cover severance pay for employees, which will cover most of the $15m the company will incur in pay cuts. Job positions. Most of the laid off employees are expected to be laid off on Monday. “The victims are in all divisions of the company”Virgin Orbit said.
Virgin Group is believed to be flagging possible job opportunities for those leaving the business at the Virgin Galactic subsidiary, which aims to offer space flights to tourists.
The latest commitment has boosted Branson’s investment in the company over the past four months to more than $70 million, having committed another $5 million just weeks earlier to support the company.
US-listed shares of Virgin Orbit plunged nearly 50% in premarket trading to close down 16%.
The job cuts come two months after Virgin Orbit, founded by Branson and 75% owned by Virgin Investments, failed in its mission to launch its first satellite from British soil in January. The company said the launch failure, which should have been a historic moment for the UK, was the result of an “anomaly” that prevented the rocket from reaching the required altitude and was then lost.
Virgin Orbit said this month that the investigation into the failed mission “almost complete” and that “our next production missile, with necessary modifications, is in the final stages of integration and testing.”
Source: Rossa Primavera
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