Virgin Orbit, a space launch company formed as a spin-off of Richard Branson’s Virgin Galactic, is shutting down its operations due to an inability to secure funding. The company was launched in 2017 to launch small satellites into outer space, starting with the development of LauncherOne rocket.
Dan Hart, the CEO, announced to the company’s employees on Thursday that 675 people, or nearly 90% of the Virgin Orbit workforce, will be laid off immediately, as the company faces immediate, dramatic, and extremely painful changes.
“We have no choice but to implement immediate, dramatic, and extremely painful changes,” Hart said in an interview. “Unfortunately, we’ve not been able to secure the funding to provide a clear path for this company.”
The company had been in late-stage talks with potential investors, but they fell through over the weekend, leaving Virgin Orbit with no future source of funding.
However, about 100 employees will remain in their roles, while the laid-off staff will receive a severance package, job assistance, and potential hiring at Virgin Galactic. Virgin Orbit used a modified version of a Boeing 747 jet to launch satellites and had six flights since mid-2020, but only four were successful, and the latest mission in January 2023 failed to orbit at the last minute.
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