The British billionaire’s rocket company is shutting down. Its stock has fallen more than 89% this year
It is a blow that will reverberate throughout the UK aerospace industry for a long time.
Billionaire Sir Richard Branson’s Virgin Orbit was set up in Britain with the ambition of becoming a space power.
But ambitions to develop a satellite manufacturing industry were dealt a huge blow.
The company is ceasing operations “for the foreseeable future” after failing to secure lifeline funding just five years after it was founded, the chief executive said Dan Hart to employees on March 30, according to CNBC.
“Unfortunately, we were unable to secure the financing to ensure a clear path forward for the company,” Hart said.
“no choice”
“We have no choice but to implement immediate, dramatic and extremely painful changes,” Hart said, adding that it would be “perhaps the most difficult assignment I have ever undertaken in my life.”
The company confirmed it is laying off 85% of its workforce, or 675 employees, “in order to reduce costs in light of the company’s inability to secure substantial financing.”
Those affected are in all areas of the company, according to the document filed with the US Securities and Exchange Commission.
Virgin Orbit said it estimates it will incur total charges of about $15 million, consisting primarily of $8.8 million in severance and employee benefit costs and $6.5 million in other costs primarily related to relocation services.
The company expects to recognize the majority of these charges in the first quarter of 2023.
These developments have accelerated the decline of Virgin Orbit’s stock. The stock started this year at $1.85. It is currently trading at around 20 cents.
This is a decrease of 89.1% in just three months. It’s a spectacular stock market drop for a company that went public at a valuation of nearly $4 billion in December 2021.
It was founded in 2017 and is based in California. Virgin Orbit suffered a major setback earlier this year when its attempt to launch a rocket into space from British soil failed.
Virgin Orbit organized this mission, in partnership with the British Space Agency and Spaceport Cornwall, which aimed to launch nine satellites into space, which would be a major first for the UK.
An “anomaly” prevented the rocket from entering orbit.
Sir Richard Branson’s space ambitions are now backed only by Virgin Galactic, which aims to send tourists into space.
Source :Skai
With a wealth of experience honed over 4+ years in journalism, I bring a seasoned voice to the world of news. Currently, I work as a freelance writer and editor, always seeking new opportunities to tell compelling stories in the field of world news.
