Virgin Orbit, space launch company, to lay off about 85% of staff

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Decision on staff cuts was the result of ‘the company’s inability to secure significant funding’. Virgin Orbit building in Long Beach, Calif. Mike Blake/ Reuters British billionaire Richard Branson’s British billionaire Richard Branson’s space launch company Virgin Orbit said on Thursday it is laying off about 85% of its staff because it has not been able to to raise new investments. The measure will impact around 675 employees and most of the layoffs should take place by April 3. The company expects to bear related charges of about $15 million, it said in a regulatory filing. The decision was the result of “the company’s inability to secure significant funding,” the document said. The company’s shares fell 38% in the after market. READ ALSO: Space launch company opens subsidiary in Brazil Billionaire Richard Branson goes into space on his company’s rocket Virgin Orbit laid off nearly all of its 750 employees on March 15 in what a spokesperson called an “operational pause”, while the company sought funding that would allow it to focus on improving rocket design. A small group of employees returned to work on March 23 to focus on rocket engine work, an email to staff said at the time. The company went public in 2021 through a SPAC, where it raised $255 million less than expected. In addition to the recent failure to raise funds, the failure to launch a rocket in January has added to the pressure on the company. Since November, Branson’s Virgin Group has provided $50 million in financing to the satellite launcher on debt secured by its equipment and other assets in the event of bankruptcy, according to regulatory filings. Richard Branson, founder of the Virgin group Divulgation/Virgin Galactic Watch: VIDEO: See the best moments of Richard Branson’s flight to space

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