Virgin Orbit, Richard Branson’s Rocket Company, Is Shutting Down

CNBC. With the news, Virgin Orbit’s stock toppled: It was down 39 percent on Friday morning, with shares trading for a mere 20 cents.

Branson created Virgin Orbit in 2017 as a spin-off of Virgin Galactic, his spaceflight operation. While the latter is aiming to send wealthy tourists to space, Virgin Orbit was working with satellites and space-launch systems. In 2021, the company went public, with a valuation of $3.7 billion. But since then, it’s only lost money: In the third quarter of 2022, the most recent period for which detailed financials are available, Virgin Orbit had a net loss of $43.6 million, with revenue of $30.

Alongside its financial struggles, the company encountered some difficulties carrying out its mission. Virgin completed four successful orbital flights from the Mojave Desert in California throughout 2021 and 2022, but when it first attempted an orbital launch from the UK this past January, the rocket prematurely shut down and failed to reach orbit. The rocket then later landed in the Atlantic Ocean.

The announcement to completely cease operations comes after Virgin Orbit took an “operational pause” on March 16 to save money and explore options for keeping the company afloat. But now, because of the layoffs, the company will lose another $15 million or so, as it makes severance payments and other concessions related to the WARN Act, a country-wide law that governs mass layoffs.

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Virgin Orbit, Richard Branson's rocket company, will lay off 85% of staff | CNN BusinessVirgin Orbit — the rocket company founded by British billionaire Richard Branson — is laying off the vast majority of its workforce as corporate leadership struggles to secure additional funding. See ... it's not all bad news...
Source: cnni - 🏆 326. / 59 Read more »

Richard Branson satellite company Virgin Orbit laying off 85% of staffVirgin Orbit, Richard Branson's satellite company, is laying off 85% of staff and reportedly ceasing operations 'for the foreseeable future' 😂🤡 Branson's satellite company It's a rocket launch company you clowns. Quit ''journalism'' Business Insider. You suck at it. I thought it was a space tourism company where millionaires and billionaires could pop into space for a bit of a laugh and something to talk about at dinner parties?
Source: BusinessInsider - 🏆 729. / 51 Read more »