Virgin Orbit is set to cut 675 jobs – about 85% of its workforce – after failing to secure new funding.
Sir Richard Branson’s US satellite launch firm is racing to seal last-minute investment to stop the firm from collapsing, according to a Financial Times report.
The entrepreneur is set to inject almost £9m to go towards severance costs, after the company announced earlier this month it would be pausing its operations.
In US regulatory filings, the firm confirmed the job cuts “in order to reduce expenses in light of the company’s inability to secure meaningful funding”. It added that the layoffs, which are due to be completed by Monday April 3, will affect workers in the “all areas” of the company.
Virgin Orbit said it expects severance payments to staff and other costs related to the cuts to cost it around $15m (£12.1m).
The news comes after the company’s attempt to make British space history, by launching a rocket into orbit from Cornwall ended in failure, after suffering an “anomaly” during the flight at the start of the year.
Virgin Orbit had previously said it was anticipating additional launches from Spaceport Cornwall, and had been in “active discussions” with key government and commercial stakeholders to start plans for new missions “as soon as later this year”.
Virgin Orbit is a key partner within the Cornish space cluster and currently the only company which has launch capability. Cornwall Council has invested more than £10m into Spaceport Cornwall, the UK’s only licensed spaceport.
The council has previously claimed that the venture will result in hundreds of new jobs and attract businesses in the space industry to the Duchy.
Following Virgin Orbit’s announced pause earlier this month, Cllr Louis Gardner, Cornwall Council’s cabinet member for the economy, said focus remained on growing Spaceport Cornwall, and “progressing relationships” with spaceflight operators.
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