It's over for Virgin Orbit.
Company CEO Dan Hart has officially announced that the company is ceasing its space launch operations "for the foreseeable future" after failing to secure funding despite its efforts.
Virgin Orbit first announced it would try to find an investor to fund its space launch operations in mid-March but was unable to secure one as of Mar. 29.
A member of the media at work next to a model of Virgin Orbit's Cosmic Girl carrier plane at Spaceport Cornwall on November 08, 2022 in Newquay, England.
Virgin Orbit Space Launch Operations Termination Details
Hart mentioned during an all-hands meeting with employees on Mar. 30 that Virgin Orbit is ceasing operations "for the foreseeable future" and that it would immediately lay off about 90% of them as a result, per CNBC.
Because of the lack of funding, Hart said he and the company have no choice but to implement "immediate, dramatic, and extremely painful changes." He added in the call that this all-hands meeting would be probably the hardest he's ever done in his life.
On the other hand, a securities filing revealed that the company would be laying off 675 employees immediately from all departments, or approximately 85% of its workforce, per Tech Crunch. The company would retain 100 positions, though Hart didn't mention why the company wishes to retain them for the time being.
Virgin Orbit will provide a severance package for every employee laid off, which consists of a cash payment, an extension of benefits, and support in finding a new position, including an opportunity to work under its sister company, Virgin Galactic, if they so wish.
"This company, this team - all of you - mean[s] a hell of a lot to me. And I have not, and will not, stop supporting you, whether you're here on the journey or if you're elsewhere," Hart said.
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The BBC reports that Sir Richard Branson's investment firm Virgin Investments injected $10.9 million into the company to fund its severance packages and other costs related to workforce reduction. It is unknown if Virgin orbit will fly and launch its rockets again in the foreseeable future.
Hart's announcement comes just two weeks after the company announced its unpaid week-long furlough to give Virgin Orbit leadership time to secure funding for its operations. It initially had a deal with Texas-based private investor Matthew Brown to do so, but negotiations between the two eventually soured before the deal could be closed.
The company also managed to secure another party to help finance it, but discussions about the deal fell through during the weekend due to an undisclosed reason.
Virgin Orbit's Space Launch Operations Life Story
Virgin Orbit is a company within Sir Branson's Virgin Group to develop and commercialize its LauncherOne satellite launch system, which was fitted under its Cosmic Girl carrier plane, which was based on a modified 747 airliner, per Engadget.
Virgin orbit claims that using the LauncherOne rocket, which can launch 1,100 pounds per mission at most, has an advantage over traditional vertically launched rockets, such as NASA's and SpaceX's. This supposed advantage is due to air-launched missions being more responsive and flexible than rockets launched from the ground.
During its operations, it managed to execute four successful satellite launch missions to Earth's orbit, while it only lost two - including the most recent one in the UK in January.
Unfortunately, Virgin Orbit was unable to turn a profit as a public company even in its six years of space launch operations.
Related Article: Virgin Orbit Extends Unpaid Furlough As It Continues Seeking Funding
