Virgin Orbit, the satellite launch company owned by billionaire Richard Branson, is set to cut 85% of its workforce, with the company struggling to secure funding after a failed mission in January, according to a report by AP.
In a filing with the US Securities and Exchange Commission on Friday, March 31, the California-based firm confirmed that it will lay off 675 employees, leaving just a skeleton staff. Earlier in March, the company had paused all operations amid reports of impending job cuts as well.
NEWQUAY, ENGLAND - JANUARY 09: A general view of Cosmic Girl, a Boeing 747-400 aircraft carrying the LauncherOne rocket under its left wing, as final preparations are made at Cornwall Airport Newquay on January 9, 2023 in Newquay, United Kingdom. Virgin Orbit launches its LauncherOne rocket from the spaceport in Cornwall, marking the first ever orbital launch from the UK. The mission has been named Start Me Up after the Rolling Stones hit.
Virgin Orbit Fails January Launch
Virgin Orbit hit the headlines in January when its mission to launch the first satellites into orbit from Europe failed after a rocket's upper stage malfunctioned.
The rocket fired from the aircraft carried nine tiny satellites for personal and business use. Around two hours after the plane lifted off, the business reported an abnormality that prevented them from entering orbit.
The setback was a blow to the UK space industry, which had hoped that the launch from Cornwall would mark the start of more commercial opportunities.
In February, the company revealed that a fuel filter had become dislodged, causing an engine to overheat and other components to malfunction over the Atlantic Ocean.
Despite four successful satellite launches from California, Virgin Orbit has struggled to secure additional funding, leading to the latest job cuts. The firm said that the layoffs would occur in all areas of the company and that it expected to incur around $15.5 million in charges related to the redundancies.
$8.8 Million in Severance Payments
The majority of the charges will take place in the first quarter, with $8.8 million in severance payments and employee benefits costs and $6.5 million in other employee-related costs, as per AP's report.
Virgin Orbit is a satellite launch company that was founded in 2017. It uses a unique approach to launch satellites into space, called air-launch, which involves deploying rockets from a modified Boeing 747 airplane.
The rockets are carried to a high altitude, where they are released from the airplane and ignited to propel the satellite into orbit.
The company's rocket is called LauncherOne, and it has completed four successful satellite launches so far from California for a mix of commercial and US government defense uses.
But ultimately, the setback in January was a huge blow to its operations and after failing to secure more funding, it has decided to lay off 85% of its workforce.
Related Article: [BREAKING] Virgin Orbit Launches First Commercial Payloads Using LauncherOne Rocket
