Categories: Finances

Virgin Orbit to lay off about 85% of staff By Reuters


© Reuters. FILE PHOTO: The Virgin Orbit building is seen after the company paused operations last week, in Long Beach, California, U.S., March 22, 2023. REUTERS/Mike Blake

By Joey Roulette

(Reuters) -Rocket maker Virgin Orbit Holdings on Thursday said it was laying off about 85% of staff because it had not been able to raise new investment.

Richard Branson’s Virgin Group has a controlling interest in Virgin Orbit.

Shares of the company fell 38% in after hours trade.

About 675 employees will lose their jobs, and the company expects to take related charges of about $15 million, Virgin Orbit said in a regulatory filing.

The move was the result of “the company’s inability to secure meaningful funding,” the filing said.

Virgin Orbit went public in 2021 through a blank-check deal, where it raised $255 million less than expected. In addition to the recent failure to raise funds, the January failure of a rocket launch increased pressure on the company.

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