Virgin Orbit to cut nearly 700 jobs
Around 85% of its workforce is being laid off after failing to secure new funding
Last updated 31st Mar 2023
Virgin Orbit is cutting nearly 700 jobs after failing to secure any new funding.
Sir Richard Branson's satellite launch firm Virgin Orbit is letting go of 675 people, which amounts to around 85% of its workforce.
He has confirmed around £9 million will be spent on severance costs with his staff, with the news coming amid reports from a newspaper that their CEO has been racing to secure last-minute investment to save the firm from collapse.
The Financial Times say Dan Hart has been looking for the last-minute cash injection following their rocket failing to complete the first UK satellite launch earlier this year.
Shares in the business plunged by as much as 40% in after-hours trading in New York after the layoffs were confirmed.
The business also paused all operations earlier this month as it sought extra funding.
In US regulatory filings, the firm confirmed the job cuts "in order to reduce expenses in light of the company's inability to secure meaningful funding".
It added that the layoffs, which are due to be completed by Monday April 3, will affect workers in the "all areas" of the company.
Virgin Orbit said it expects severance payments to staff and other costs related to the cuts to cost it around 15 million US dollars (£12.1 million).
Melissa Quinn, Head of Spaceport Cornwall: “We are saddened to hear the news from Virgin Orbit. We wish the very best for all of the team who have been affected.
"Spaceport Cornwall continues to operate with no direct impact to the team or project.
"As the UK’s only licensed Spaceport we continue to grow the space cluster in Cornwall through developing future launch operations, opening a new facility to support global space and satellite businesses and inspire local school children into STEAM through our outreach programme."