Virgin Orbit Holdings Inc., the satellite-launch company tied to British billionaire Richard Branson, is ceasing operations indefinitely, succumbing to growing cash-crunch pressures that have paralyzed startups in many emerging technologies.
The company said in a filing Thursday that it was cutting 675 jobs, or about 85% of its workforce, after it failed to secure additional funding. A spokesperson for Virgin Orbit said that operations were halted for the foreseeable future, confirming an earlier report from CNBC. The remaining 15% of employees will work on winding down the business, the spokesperson said.
The move punctuates a rapid fall after its high-profile launch failure in January and a collapse in its stock price. Virgin Orbit temporarily suspended operations earlier this month while it sought additional capital. The firm — part of Branson’s empire that includes airline Virgin Atlantic and spaceflight company Virgin Galactic Holdings Inc. — hasn’t turned a profit as a public company.
