Due to the inability to obtain effective funds, Virgin Orbit announced on Thursday (30th) that it would suspend operations indefinitely and lay off 85% of its workforce.

(Reuters)

[Financial Channel/Comprehensive Report] The aerospace company "Virgin Orbit" (Virgin Orbit) founded by British billionaire Branson (Richard Branson) has recently been in deep financial crisis. To break the situation, Virgin Orbit announced on Thursday (30th) that it would suspend operations indefinitely and lay off 85% of its employees, with a total of about 675 people. The remaining 15% of employees will be responsible for ending the business. After the news came out, Virgin Orbit Weekly After four hours, it plummeted nearly 45% to $0.19 per share, while the company's share price was more than $7 a year ago.

Virgin Orbit revealed the job cuts in a regulatory filing on Thursday, citing a lack of effective funding.

In addition to the recent obstacles to raising funds, the failure of the satellite launch in January also exacerbated the rapid decline in the company's stock price.

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Regulatory documents show that Virgin Orbit expects 675 employees to lose their jobs, resulting in related costs of about $15 million, including $8.8 million in severance pay and employee benefits, and $6.5 million in other expenses, such as reemployment subsidies. .

Virgin Orbit is still looking to sell all or part of the business, but the deal does not include Matthew Brown, a person familiar with the matter said.

Brown, a venture capital fund investor from Texas, expressed interest in the Virgin Orbit deal earlier this month, but rumors broke last weekend.

Virgin Orbit was spun off from Virgin Galactic in 2017 and will go public through a SPAC in 2021.

Virgin Orbit's business is mainly to send small satellites into space orbit, which is different from Virgin Galactic's space tourism business, which sends humans into space and back.

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