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HomeCURRENT AFFAIRSBUSINESSVirgin Orbit Forced to Cut 85% of its Workforce Due to Funding...

Virgin Orbit Forced to Cut 85% of its Workforce Due to Funding Woes

Virgin Orbit: Virgin Orbit Holdings, a manufacturer of rockets, announced on Thursday that it was letting go of around 85% of its workforce due to its inability to secure new funding. In after-hours trading, the company’s shares, which are owned by Richard Branson’s Virgin Group, dropped 38%. According to Virgin Orbit, approximately 675 staff will lose their employment, and the business anticipates incurring corresponding costs of about $15 million.

Virgin Orbit raised $255 million less than anticipated

According to the petition, the decision was made as a result of “the company’s failure to secure sufficient funding.” Virgin Orbit raised $255 million less than anticipated when it went public in 2021 through a blank-check offering. The failure of a rocket launch in January added to the company’s strain along with the most recent failure to raise money. Last week, Reuters revealed that Texas-based Matthew Brown was in discussions to invest $200 million in the business. According to two people involved with the conversations who preferred to remain anonymous, the talks broke down, Reuters reported on Monday.

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Virgin Orbit placed almost all of its 750 staff on leave

On March 15, Virgin Orbit placed almost all of its 750 staff on leave during what a spokeswoman referred to as a “operational break” as the business looked for a financial lifeline that would enable it to concentrate on developing its rocket design. On March 23, a small group of employees came back to work to concentrate on work on rocket engines, according to an email sent to staff at the time. By April 3, the corporation anticipates that layoffs will be largely over.

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