Virgin Orbit Holdingso, a manufacturer of rockets, announced it was laying off around 85% of its workforce because it was unable to secure additional 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.
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.
Following Brown's appearance on CNBC last week, Virgin Orbit released a statement saying it "notes the comments made by Matthew Brown in reference to the company" and that it was in investment talks with possible partners but would not elaborate further. Monday, Brown opted not to comment.
According to securities documents, since November Branson's Virgin Group has loaned the satellite launch company $50 million in debt that is secured against its machinery and other assets in the event of bankruptcy.
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.
(Source:www.theeconomictimes.com)
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.
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.
Following Brown's appearance on CNBC last week, Virgin Orbit released a statement saying it "notes the comments made by Matthew Brown in reference to the company" and that it was in investment talks with possible partners but would not elaborate further. Monday, Brown opted not to comment.
According to securities documents, since November Branson's Virgin Group has loaned the satellite launch company $50 million in debt that is secured against its machinery and other assets in the event of bankruptcy.
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.
(Source:www.theeconomictimes.com)
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