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| Virgin Orbit: Sir Richard Branson's rocket company lays off 85% of staff | Virgin Orbit: Sir Richard Branson's rocket company lays off 85% of staff |
| (about 5 hours later) | |
| Sir Richard Branson | Sir Richard Branson |
| British billionaire Sir Richard Branson's rocket company Virgin Orbit says it will lay off 85% of staff after failing to secure new investment. | British billionaire Sir Richard Branson's rocket company Virgin Orbit says it will lay off 85% of staff after failing to secure new investment. |
| The firm will also cease operations for the foreseeable future, according to media reports. | The firm will also cease operations for the foreseeable future, according to media reports. |
| It comes weeks after the company paused operations in an apparent attempt to shore up its finances. | It comes weeks after the company paused operations in an apparent attempt to shore up its finances. |
| Earlier this year, a Virgin Orbit rocket failed to complete the first ever satellite launch from UK soil. | Earlier this year, a Virgin Orbit rocket failed to complete the first ever satellite launch from UK soil. |
| The company's shares plunged by more than 44% in after-hours trading in New York on Thursday. | The company's shares plunged by more than 44% in after-hours trading in New York on Thursday. |
| In a US regulatory filing, Virgin Orbit said it made the decision "in order to reduce expenses in light of the company's inability to secure meaningful funding." | In a US regulatory filing, Virgin Orbit said it made the decision "in order to reduce expenses in light of the company's inability to secure meaningful funding." |
| The layoffs will impact approximately 675 employees who "are located in all areas of the company." | The layoffs will impact approximately 675 employees who "are located in all areas of the company." |
| It said that Sir Richard's investment firm Virgin Investments has injected $10.9m (£8.8m) into Virgin Orbit "to fund severance and other costs related to the workforce reduction". | It said that Sir Richard's investment firm Virgin Investments has injected $10.9m (£8.8m) into Virgin Orbit "to fund severance and other costs related to the workforce reduction". |
| Virgin Orbit said it expects payments to laid off staff and other costs to total around $15m. | Virgin Orbit said it expects payments to laid off staff and other costs to total around $15m. |
| It comes amid media reports that the company's boss has told staff the firm will suspend its activities until further notice. | It comes amid media reports that the company's boss has told staff the firm will suspend its activities until further notice. |
| "We have no choice but to implement immediate, dramatic and extremely painful changes," Virgin Orbit chief executive Dan Hart said at a meeting with employees, according to CNBC, which first reported the news. | "We have no choice but to implement immediate, dramatic and extremely painful changes," Virgin Orbit chief executive Dan Hart said at a meeting with employees, according to CNBC, which first reported the news. |
| Virgin Orbit did not immediately respond to a BBC request for comment. | Virgin Orbit did not immediately respond to a BBC request for comment. |
| The firm, which was founded in 2017, has not turned a profit as a public company. | The firm, which was founded in 2017, has not turned a profit as a public company. |
| It develops rockets to carry small satellites and is part of Sir Richard's business empire, which includes airline Virgin Atlantic and space tourism company Virgin Galactic. | It develops rockets to carry small satellites and is part of Sir Richard's business empire, which includes airline Virgin Atlantic and space tourism company Virgin Galactic. |
| Watch: Virgin Orbit rocket heads into space | Watch: Virgin Orbit rocket heads into space |
| Watch: Virgin Orbit rocket heads into space | Watch: Virgin Orbit rocket heads into space |
| In January, Virgin Orbit attempted the first ever satellite mission launched from UK soil, which ended in failure. | |
| The company's LauncherOne rocket - which was launched from the Boeing 747 aircraft Cosmic Girl - reached space but fell short of reaching its target orbit. | The company's LauncherOne rocket - which was launched from the Boeing 747 aircraft Cosmic Girl - reached space but fell short of reaching its target orbit. |
| The mission was billed as a milestone for UK space exploration. It was hoped it would mark a major step forward in fulfilling an ambition to turn the country into a global player - from manufacturing satellites to building rockets and creating new spaceports. | The mission was billed as a milestone for UK space exploration. It was hoped it would mark a major step forward in fulfilling an ambition to turn the country into a global player - from manufacturing satellites to building rockets and creating new spaceports. |
| Earlier this month, Virgin Orbit said it was "initiating a company-wide operational pause" and "anticipates providing an update on go-forward operations in the coming weeks." | Earlier this month, Virgin Orbit said it was "initiating a company-wide operational pause" and "anticipates providing an update on go-forward operations in the coming weeks." |
| Related Topics | Related Topics |
| Companies | Companies |
| British space programme | British space programme |
| Richard Branson | Richard Branson |
| Space exploration | Space exploration |