Virgin Orbit Lays Off 85% of Workforce After Failing to Secure Funding

Virgin Orbit, the space company founded by Richard Branson, has announced that it is laying off around 85% of its workforce in an effort to cut costs after failing to secure additional funding. The company had already furloughed all employees and entered an "operational pause" in an attempt to find more cash, but talks with a potential investor dissolved over the weekend. The layoffs will affect all departments and will cost the company around $15.3 million in severance payments, employee benefits, outplacement services, and regulatory compliance. To pay for these expenses, Virgin Orbit received a $10.9 million injection from Virgin Group, which oversees Branson's various businesses. Virgin Orbit has successfully completed four missions using its unique system that uses a modified Boeing 747 to release a rocket mid-flight. However, the company's most recent mission ended in failure due to an issue with the rocket's second stage, posing a major blow to Virgin's plans to continue launches this year. The company's shares have plummeted from $1.32 at the beginning of the month to just $0.34.