The billionaire company Richard Branson who was on the race to space, Virgin Orbit lays off nearly all of its employees and prepares for a possible shutdown.
The company dedicated to the launch of satellites, has ceased its operations until further notice, therefore, will cut 85% of its staff. That is, about 675 employees who will leave on April 3, which will affect all departments.
This after not having obtained financing to continue working in January. The news was disclosed through a regulatory document filed with the United States Securities and Exchange Commission (SEC).
The company made the decision while “carrying out discussions with potential funding sources and analyzing strategic opportunities.”
The beginning of the end
Besides, Virgin Orbit investigates the failed mission in January to launch nine satellites from the UK and reported a $43 million loss in the third quarter in November.
This is what Dan Hart, the CEO of Virgin Orbitwhen he announced the decision, according to audio obtained by the CNBC:
“Unfortunately, we have not been able to secure funding to provide a clear path for this venture. We have no choice but to implement immediate, dramatic and extremely painful changes. This is probably the hardest meeting I’ve ever had in my life. This company, this team, all of you, mean the world to me. And I have not and will not stop supporting them, whether they continue on this journey or whether they go elsewhere,” Hart said.
On the other hand, the Branson company has issued a note convertible into shares to Virgin Investments Limited, of the same millionaire, to be able to pay the settlements to the people laid off for 11 million dollars. So, these expenses amount to 15 million dollars, money that the aerospace company does not have and has had to be financed.
Takeoff and drop of Virgin Orbit
Richard Branson founded Virgin Orbit in 2017 as a satellite launch company, which unlike its direct competition with SpaceX and RocketLab, it is carried out from the air and not from the ground. This works in collaboration with Virgin Galacticthe aerospace tour company that takes people (for a small fee) to the edge of space.
The firm has plunged more than 40% on the New York Stock Exchange and its shares are worth less than 20 cents.
Editorial Team The editorial team of EMPRENDEDOR.com, which for more than 27 years has worked to promote entrepreneurship.